Elon Musk is expected to become Twitter’s temporary CEO after closing his $44 billion takeover of the social-media firm, a person familiar with the matter said on Thursday, as the billionaire inches closer to securing funds for the deal.
Musk, the world’s richest man, is also the CEO of Tesla Inc and heads two other ventures, The Boring Company and SpaceX. Tesla shares dropped over 8% on Thursday, as investors fretted that Musk’s involvement with Twitter could distract him from running Tesla. Twitter shares, on the other hand, were up by 4% at $50.89, closer to the deal price of $54.20, as investors bet that the new funding made the completion of the deal more likely.
Parag Agrawal, who was named Twitter’s CEO in November, is expected to remain in his role until the sale of the company to Musk is completed. CNBC first reported on Thursday that Musk plans to become CEO of Twitter on an interim basis.
Earlier on Thursday, Musk listed a group of high-profile investors who are ready to provide funding of $7.14 billion for his Twitter bid, including Oracle’s co-founder Larry Ellison, Saudi Arabian investor Prince Alwaleed bin Talal and Sequoia Capital.
Great to connect with you my "new" friend @elonmusk🤝🏻
I believe you will be an excellent leader for @Twitter to propel & maximise its great potential@Kingdom_KHC & I look forward to roll our ~$1.9bn in the “new” @Twitter and join you on this exciting journey
— الوليد بن طلال (@Alwaleed_Talal) May 5, 2022
The other investors include crypto firm Binance, New York-based real estate tycoon Steven Witkoff’s firm, and DFJ Growth IV Partners, which has investments in the Boring Company, SpaceX, SolarCity, and Tesla.
Source: The News International