Elon Musk has lined up a new CEO for Twitter and advised banking companies that agreed to support fund his $44 billion acquisition provide about his options to monetize tweets, in accordance to a new report from Reuters. A source advised Reuters that Musk has determined on who he plans to appoint as the new main executive of Twitter, but the supply did not identify the person. Twitter’s latest CEO Parag Agrawal, who took the job immediately after Jack Dorsey stepped down in November, is envisioned to stay as CEO right until the deal is finished.
Reuters experiences that Musk told Twitter chairman Bret Taylor that he does not have self confidence in the firm’s management, which is a sentiment that he also mentioned in SEC filings. Agrawal would be established for a significant payment deal if the deal closes and Musk brings in new administration, as he would obtain $38.7 million due to a clause in his agreement, in accordance to the company’s hottest proxy submitting.
Reuters stories that Musk explained to banking companies that he options to produce more strategies to make funds from tweets. For instance, he reported that he programs to create a way to monetize tweets that go viral or contain critical information and facts. He also suggested the plan of charging a fee when third-occasion internet sites quotation or embed tweets from confirmed accounts.
The Washington Publish studies that Musk also introduced up the concept of having to pay influencers to generate information for the system, which is a business design that has confirmed to be effective for TikTok. Musk is also said to be fascinated in the thought of subscription providers that the business could supply.
In deleted tweets from before this month, Musk suggested substantial changes to Twitter Blue, which is the social media giant’s membership services that is presently priced at $2.99 per month. Musk suggested reducing the selling price, incorporating a way to pay in dogecoin and banning promoting. In another now-deleted tweet, Musk explained he desires to transfer Twitter absent from its dependence on promoting for a lot of its profits.
Musk experienced also explained to the banks he could crack down on government and board fork out at Twitter to slash expenses. Reuters also experiences that in his pitch to the banking institutions, Musk reported Twitter’s gross margin is a great deal decrease than other social media services, this sort of as Facebook and Pinterest, and argued that there are means to run the corporation in a a lot more cost-productive way.
Bloomberg News documented this week that Musk spoke to bankers about occupation cuts as section of his pitch to the creditors. Musk reportedly will never make selections on career cuts until he receives possession of the firm.
Twitter states the transaction, which was unanimously authorised by the board, will probably close this yr subsequent shareholder and regulatory approval and “the satisfaction of other customary closing conditions.” Musk will have to pay Twitter a $1 billion termination rate if he doesn’t go by with his acquisition of the social network, for each a latest SEC filing. The filing, which facts the conditions of the agreement, suggests Twitter would have to spend the similar fee underneath unique conditions.