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Elon Musk says he’ll cut jobs at Twitter, make money from tweets: Reports


Musk needed to persuade the banks that Twitter generated sufficient money stream to cowl the mortgage he was searching for. In the long run, he obtained $13 billion in loans secured in opposition to Twitter and a $12.5 billion margin mortgage secured in opposition to his Tesla Inc (TSLA.O) inventory. He promised to pay the stability of the consideration together with his personal cash.

Elon Musk says he will cut jobs at Twitter make money from tweets Reports gcw
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New Delhi, First Printed Apr 30, 2022, 10:05 AM IST

Elon Musk instructed banks that agreed to assist fund his $44 billion acquisition of Twitter Inc that he might reduce govt and board pay on the social media firm in a bid to chop prices, and that he would develop new methods to monetize tweets, in line with three folks aware of the matter. Musk made the pitch to the lenders days after submitting his provide to Twitter on April 14, the sources stated. His April 21 submitting of financial institution pledges was crucial in Twitter’s board accepting his “best and last” bid.

Musk needed to persuade the banks that Twitter generated sufficient money stream to cowl the mortgage he was searching for. In the long run, he obtained $13 billion in loans secured in opposition to Twitter and a $12.5 billion margin mortgage secured in opposition to his Tesla Inc (TSLA.O) inventory. He promised to pay the stability of the consideration together with his personal cash.

In accordance with the experiences, Musk’s pitch to banks was extra about his imaginative and prescient than exhausting pledges, and the precise value discount he would search as soon as he buys Twitter are unknown. In accordance with the sources, the proposal he detailed to banks was missing in depth.

Musk additionally used Twitter’s gross margin, which is considerably decrease than opponents resembling Meta Platforms Inc’s (FB.O) Fb and Pinterest (PINS.N) in his presentation to banks, suggesting that this provides loads of room to run the agency in a extra cost-efficient method.

Additionally Learn | Twitter provides extra customers than anticipated amid Elon Musk’s takeover

In accordance with one of many sources, Musk is not going to make job-cut choices till he takes over the agency later this yr. He proceeded with the acquisition regardless of not accessing delicate details about the corporate’s monetary efficiency and headcount. In accordance with the sources, Musk knowledgeable the banks that he additionally goals to construct options to extend firm revenue, resembling new strategies to monetize tweets that comprise vital data or go viral.

In accordance with the sources, Musk, whose web value is estimated to be $246 billion, has recommended that he’ll help the banks in promoting the syndicated debt to buyers, and that he could reveal extra specifics about his enterprise technique for Twitter at the moment.

Additionally Learn | Elon Musk sells about $4B in Tesla inventory after deciding to purchase Twitter

Final Up to date Apr 30, 2022, 10:05 AM IST

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