CNBC is reporting that after Musk's purchase of Twitter, the ultra-wealthy entrepreneur will temporarily serve as CEO of the company.
Elon Musk is expected to serve as a temporary CEO of Twitter for a few months after he completes his $44 billion takeover of the social media company, sources told CNBC's David Faber.
An SEC filing on Thursday revealed Musk secured approximately $7.14 billion in equity commitments from friends and other investors to buy Twitter. Faber said Musk handpicked the investors. Commitments range from $1 billion from Oracle co-founder Larry Ellison to $5 million from Honeycomb Asset Management, which invested in SpaceX. Faber added that Twitter co-founder Jack Dorsey may back it, and Musk is talking to him about the possibility of contributing shares immediately or before the closing of the merger.
This is very, very good news.
Indications were that Musk would find someone else to run Twitter as CEO, but this report indicates that Musk would come right in and take the reins himself.
In addition to being the owner of the company, as CEO Musk can make important decisions such as personnel hiring and firing, making the Twitter algorithms public, and other business decisions an owner would normally leave to a CEO.
Musk, who is the CEO of Tesla and SpaceX, has recently led presentations in front of investors, where he gave financial projections based on his analysis of Twitter, according to sources familiar with the situation who spoke with Faber.
Musk told investors that he felt Twitter's earnings before interest, taxes, depreciation and amortization margin was too low and the company has "too many engineers not doing enough," Faber said, citing sources familiar. Musk also pledged to make the company a "magnet for talent," Faber added.
Musk has already spotted some major problems with the company and is definitely looking to make some major shakeups!
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