Banks that have agreed to help Funding $44 billion from Elon Musk purchase of Twitter Inc. has been told. it will crack down on executive and board Pay in Impulse to reduce costs, it will evolve new Ways to secure revenue from tweets, three familiar sources with He said it.
musk made The playing field for the lenders as he tries to secure it debt for Acquisition days after sending his offer to Twitter on The sources said that April 14. his submission of bank Commitments on It was April 21 key to Twitter board accept it”best And final” an offer.
Musk had to convince the banks that Twitter had produced enough cash flow to serve debt Seeks. In the end, he got 13 billion dollars in secured loans against Twitter and a $12.5 billion marginal loan tied to its shares in Tesla Inc. agreed to pay for The rest of look with owned by him cash.
The sources said that Musk’s offer to the banks constituted his vision and not fixed obligations cost The cuts he’ll follow once he owns Twitter remain not clear. The plan he explained to the banks was weak on Details, sources added.
Mask tweeted about canceling salaries of Twitter board Managers, which said can result in About 3 million dollars in cost savings. Stock-based Twitter compensation for For the 12 months ended December 31, 2021, $630 million, up 33% from 2020, corporate filings show.
In his presentation to the banks, mask also He pointed to Twitter’s gross margin, which is significantly lower than that of peers such as Meta Platforms Inc’s Facebook and Pinterest, arguing that this leaves a lot to be desired. of space to run company in a more cost-effective way.
The sources asked not to be identified as it is a matter of confidentiality. Musk representative declined to comment.
Bloomberg News reported earlier on Thursday that Musk specifically mentioned job cuts as part of Submit it to the banks. One of The sources said that Musk will not do decisions on Work cut until ownership is assumed of The company later this year. go ahead with Possession without the need access for confidential details on company financial performance and the number of employees.
Musk told the banks that he also plans To develop features grow business Revenue, including new ways to make it money out of Tweets that have significance information Or spread quickly, sources said.
Ideas submitted by up Including charging when-party website Wants to quote or include a Tweet from verified individuals or organizations.
In a tweet earlier this month that he later deleted, Musk suggested a raft of changes to me social media The giant Twitter Blue premium subscription service, including its downgrade priceBan advertising and give option to pay in Dogecoin Cryptocurrency. Twitter’s Blue Premium service now costs $2.99 per month.
In another tweet he deleted, Musk said he wanted to reduce Twitter adoption on advertisement for Much of its revenues.
musk who net worth Forbes’ net worth of $246 billion, and he has indicated that he will do it support Banks in Syndicate Marketing debt For investors, it may reveal more details of for him business plan for The sources said that Twitter afterwards.
musk also padded up a new chief executive officer for Twitter, one of sources added declining to reveal identity of that person. Twitter chief Brett Taylor told earlier this month that he doesn’t trust in San Francisco-based management company. Parag Agrawal, who Appointed CEO of Twitter in November, is expected to remain in for him role until sale of The Musk Company is completed.
big risk for some banks
Musk is overwhelmed with Offers from potential stock partners to join for him in Twitter deal, and will decide in Next weeks if teams up with someone, one of The sources said. Musk is unlikely to be a partner with a private Company stock given that the transaction was not structured as a traditional acquisition, source added.
Musk revealed this week that he sold $8.5 billion worth of Tesla sharesa move Most likely intended to help fund his deal for Twitter.
CEO of Tesla also He told the banks he would seek moderation policies on The social media Free platform like possible Within legal restrictions of Every Twitter jurisdiction operates, sources said, a position he has publicly echoed.
Twitter’s $13 billion loan equals seven times Predicted 2022 on Twitter earnings Before interest, taxes, depreciation and amortization. This was a big risk for some banks who I just decided to share in The sources said the marginal loan.
else reason Some banks chose out Because they were afraid that Mask’s unpredictability might happen result in exodus of A talent from Twitter, which is hurting business, according to sources.
A Twitter spokesperson did not respond to a request for comment.
Banks that have agreed to help Funding $44 billion from Elon Musk purchase of Twitter Inc. has been told. it will crack down on executive and board Pay in Impulse to reduce costs, it will evolve new Ways to secure revenue from tweets, three familiar sources with He said it.
musk made The playing field for the lenders as he tries to secure it debt for Acquisition days after sending his offer to Twitter on The sources said that April 14. his submission of bank Commitments on It was April 21 key to Twitter board accept it”best And final” an offer.
Musk had to convince the banks that Twitter had produced enough cash flow to serve debt Seeks. In the end, he got 13 billion dollars in secured loans against Twitter and a $12.5 billion marginal loan tied to its shares in Tesla Inc. agreed to pay for The rest of look with owned by him cash.
The sources said that Musk’s offer to the banks constituted his vision and not fixed obligations cost The cuts he’ll follow once he owns Twitter remain not clear. The plan he explained to the banks was weak on Details, sources added.
Mask tweeted about canceling salaries of Twitter board Managers, which said can result in About 3 million dollars in cost savings. Stock-based Twitter compensation for For the 12 months ended December 31, 2021, $630 million, up 33% from 2020, corporate filings show.
In his presentation to the banks, mask also He pointed to Twitter’s gross margin, which is significantly lower than that of peers such as Meta Platforms Inc’s Facebook and Pinterest, arguing that this leaves a lot to be desired. of space to run company in a more cost-effective way.
The sources asked not to be identified as it is a matter of confidentiality. Musk representative declined to comment.
Bloomberg News reported earlier on Thursday that Musk specifically mentioned job cuts as part of Submit it to the banks. One of The sources said that Musk will not do decisions on Work cut until ownership is assumed of The company later this year. go ahead with Possession without the need access for confidential details on company financial performance and the number of employees.
Musk told the banks that he also plans To develop features grow business Revenue, including new ways to make it money out of Tweets that have significance information Or spread quickly, sources said.
Ideas submitted by up Including charging when-party website Wants to quote or include a Tweet from verified individuals or organizations.
In a tweet earlier this month that he later deleted, Musk suggested a raft of changes to me social media The giant Twitter Blue premium subscription service, including its downgrade priceBan advertising and give option to pay in Dogecoin Cryptocurrency. Twitter’s Blue Premium service now costs $2.99 per month.
In another tweet he deleted, Musk said he wanted to reduce Twitter adoption on advertisement for Much of its revenues.
musk who net worth Forbes’ net worth of $246 billion, and he has indicated that he will do it support Banks in Syndicate Marketing debt For investors, it may reveal more details of for him business plan for The sources said that Twitter afterwards.
musk also padded up a new chief executive officer for Twitter, one of sources added declining to reveal identity of that person. Twitter chief Brett Taylor told earlier this month that he doesn’t trust in San Francisco-based management company. Parag Agrawal, who Appointed CEO of Twitter in November, is expected to remain in for him role until sale of The Musk Company is completed.
big risk for some banks
Musk is overwhelmed with Offers from potential stock partners to join for him in Twitter deal, and will decide in Next weeks if teams up with someone, one of The sources said. Musk is unlikely to be a partner with a private Company stock given that the transaction was not structured as a traditional acquisition, source added.
Musk revealed this week that he sold $8.5 billion worth of Tesla sharesa move Most likely intended to help fund his deal for Twitter.
CEO of Tesla also He told the banks he would seek moderation policies on The social media Free platform like possible Within legal restrictions of Every Twitter jurisdiction operates, sources said, a position he has publicly echoed.
Twitter’s $13 billion loan equals seven times Predicted 2022 on Twitter earnings Before interest, taxes, depreciation and amortization. This was a big risk for some banks who I just decided to share in The sources said the marginal loan.
else reason Some banks chose out Because they were afraid that Mask’s unpredictability might happen result in exodus of A talent from Twitter, which is hurting business, according to sources.
A Twitter spokesperson did not respond to a request for comment.