Elon Musk acquires Twitter for $44 billion, fires top executives

Elon Musk eventually bought Twitter. As his first official act, he fired three of the social media platform’s top executives. Musk took over Twitter and CEO Parag Agrawal and two other senior executives were soon fired.

Sources told The Washington Post that after they were fired, Agrawal, Twitter’s head of legal policy, trust and safety Vijaya Gade and CFO Ned Segal were put on a shuttle and taken out of the building. Sean Edgett, who was Twitter’s general counsel, was also let go.

Axios says former CEO Jack Dorsey hired Gadeh and that he was the one who decided to ban former President Donald Trump from the platform. The sale ends months of negotiations between the company and Tesla’s 51-year-old founder. In July, he said he would back out of his deal to buy Twitter.

It also comes after the billionaire businessman sent a letter to Twitter on Oct. 3 offering to buy the platform for the price he agreed to pay for it in April: $44 billion, or $54.20 per share.

Bloomberg cited a source familiar with the situation as saying Musk decided to go ahead with the deal because his lawyers thought he would lose the case if it went to court.

The Guardian says trading in Twitter shares was suspended on October 4 after news of the deal sent the company’s stock price up nearly 13%.

According to internal documents and interviews The Washington Post used for a report that came out last week, Musk told potential investors that as owner, he plans to lay off nearly 75 percent of the company’s 7,500 workers. That could make Twitter employees nervous about the sale.

Twitter sued Musk in July because it wanted to “force” him to go through with the acquisition. In court documents obtained by the sources at the time, Twitter said that after Musk agreed to buy the social media platform, he did so “in bad faith.”

“In April 2022, Elon Musk entered into a binding merger agreement with Twitter, pledging to use his best efforts to consummate the transaction,” Twitter’s complaint, filed in a Delaware court in July, said.

“Now, less than three months later, Musk is refusing to fulfill his obligations to Twitter and its shareholders because the deal he signed no longer serves his personal interests,” he continued.

“After making a public spectacle of bringing Twitter into play and after proposing and then signing a seller-friendly merger agreement, Musk clearly believes that he — unlike any other party subject to Delaware contract law — is free to change his mind, trash the company, disrupt its operations, destroy shareholder value and walk away,” the company argued.

Musk pulled out of the deal to buy the company days before the lawsuit was filed. He said Twitter had “violated multiple provisions” of the original agreement.

Musk said Twitter didn’t tell him and his team enough about how many fake accounts and bots were on its network for them to do their own investigation. Musk’s counterclaim raised those claims again, which Twitter denied.

Musk said he was “excited” about the purchase during Tesla’s Oct. 19 earnings call. He said the platform has “incredible potential,” but also said he and other investors are “obviously overpaying for Twitter right now.”

“The long-term potential for Twitter is, in my view, an order of magnitude greater [than] its current value,” Musk added during the call, Insider reported.

When Twitter first said in April that it had “entered into a definitive acquisition agreement,” Musk said he wanted to make the company “better than ever.”

“Twitter has enormous potential,” he wrote in April, “I look forward to working with the company and the community of users to unlock it.”

For more such updates follow us only on Lee Daily.

Leave a Reply

Your email address will not be published. Required fields are marked *