The long-awaited controversy of Elon Musk’s Twitter takeover ended after the social media platform’s team accepted the offer of $44 billion in cash from the billionaire who wants to take the company private.
As part of the deal, stakeholders in the social media platform are to receive an amount of $54.20 for each stake they hold in the company. Besides, the shareholders are expected to vote on whether or not they accept the deal in the next couple of days.
The initial bid tabled by the billionaire has caused quite a stir in the industry, going by the way the tech entrepreneur chooses to approach the takeover plan. Many in the crypto industry are excited about the takeover, especially those from the Doge community, where Musk is known to be an ardent supporter.
Once all the necessary legal and regulatory issues are ironed out and Musk takes complete control, there will be a myriad of changes that will see the once public social media platform become private, as outlined by the billionaire.
Is the Current CEO about to Leave Twitter?
The deal may have ended weeks of speculation, but one thing that is not yet clear is the future of the company’s top decision-makers. It is reported that Parag Agrawal, the current CEO, has addressed the company’s employees about the future, telling them that everything is not certain after the acquisition.
According to Agrawal, once the deal is sealed, the company’s direction is not known to anyone at the moment.
However, it is widely reported that the CEO will keep his position for the time being. Still, suppose he is shown the way out within the first 12 months of the takeover. In that case, he is liable to receive a severance package estimated to be $42 million in salary and other benefits, as reported by Equilar.
Jack Dorsey in Support of Musk’s Ownership
Following the announcement of the takeover, the former CEO of Twitter, Jack Dorsey, has given his opinion on the recent events, stressing that if there is anyone capable of owning and running Twitter, the Tesla CEO is the best fit.
Dorsey believes that Musk has what it takes to run a company solo and trusts in the billionaire’s ability to deliver where it matters.
Musk has previously revealed what he wants to achieve with the social media giant if he manages to take over the company’s running. Eliminating spambots, promoting free speech, and introducing user authentication, are some things he wants to incorporate.
How Can Elon Fund the Takeover?
The price for the acquisition of the social media giant is reported to be a 38% premium from the closing price as of April 1. But there have been speculations that the billionaire is not financially buoyant enough to cover the purchase from his wealth which many see as a half payment backed by loans.
A substantial part of the funds will be from the large cache of wealth the billionaire has.