After the long tussle between Elon Musk and Twitter, everything is now water under the ridge. A few hours ago, Elon Musk officially completed the Twitter deal and took over the company. The deal is worth $44 billion, the initial fee agreed upon before the whole brouhaha. Although Musk believes that Twitter is worth much less, he perhaps had no option but to continue with the deal. After taking over Twitter, Musk quickly fired four senior executives. This includes the CEO, CFO, general counsel and heads of legal policy, trust and safety.
There are also reports from Forbes that Musk is making some sudden moves. He reportedly appeared in the headquarters building without any prior communication on the first day he entered Twitter. All employees panicked. The plenary meeting originally scheduled for the afternoon was suddenly cancelled. In fact, insiders and Twitter staff didn’t actually know what Musk was doing. They had to rely on external media reports to know what he is doing. Some people directly say that they are “terrified”, for fear that they will become “the next person to be fired”. Of course, Elon Musk is not coming to Twitter to play, he will be coming with a “gun”. There are already reports that he will fire 75% of Twitter’s workforce. So, a lot of people will be losing their jobs.
Elon Musk set to “liberate” Twitter
On his first morning as the owner of Twitter, he just purged the original four executives and then tweeted “This little blue bird is finally liberated”, and gained millions of points. Like, of course, there are some anonymous trolls making hate speech. On Friday morning, however, some engineers said they had been notified by Musk’s intermediary. They claim that Musk wants access to the latest software code they had written. He wants these engineers to print the codes and show them to him.
Bloomberg reports that it was also said that Musk sent Tesla engineers to review the Twitter code on the day of the Twitter acquisition. From noon that day, Twitter engineers could no longer modify the code. This is to ensure that nothing would change in the product until Musk’s acquisition was fully confirmed. Some engineers were notified to print the code written in the past 30 to 60 days. Some people in charge said that Musk would talk to them one-on-one and might check their code on the spot. But at noon, the engineer received a notification to “stop printing the code immediately”. The mail also directs that any printed code should be put into the shredder immediately. He now asks for a soft copy of the codes. Obviously, Elon Musk is still struggling with decision-making at Twitter.
In April this year, Musk proposed to acquire Twitter at a price of $54.20 per share. On October 28, Musk completed a transaction to take Twitter private for $44 billion.
Gizchina News of the week
Elon Musk takes over Twitter – investors worry, “can he manage so many companies?”
Tesla CEO Elon Musk’s $44 billion acquisition of social media Twitter has been settled. At the moment, analysts and investors are discussing a key issue. The key issue is whether or not Musk has the capacity to take charge of so many companies. Elon Musk also runs brain-computer chip startup, Neuralink and tunnel-digging company, Boring. Musk will become Twitter’s interim chief executive officer (CEO) after firing former CEO, Parag Agarwal. With other top executives gone, he will have to take some big decisions for the time being.
“He’s doing his best,” said Dennis Dick, a trader at investment firm Triple D Trading. “You’d have to worry that Tesla might not get as much attention as it used to because Twitter is going to be a horse. A big project for SK.”
Tesla still faces huge risks. The company’s two large plants in Texas and Berlin, Germany, are struggling to expand production and face increasing competition from established automakers such as Ford and General Motors. Tesla shares have lost nearly a third of their value since Musk offered to buy Twitter in April, more than double the decline in the S&P 500 over the same period.
Musk wants a free and fair Twitter
Musk has said he wants to “beat” Twitter’s trash bots and reduce restrictions on what users can post. However, he did not reveal how the goal would be achieved or specify who would run the company.
Mike Ramsey, vice president of the automotive business at Gartner, a market research firm, also said that Tesla’s leadership is not as clear as SpaceX’s, and the company’s employees must stand up for operations.
How Musk alters his tweets could also affect Tesla’s sales, and it remains to be seen whether the effect will be positive or negative.
Garrett Nelson, an analyst at CFRA Research, a market research firm, believes that “the acquisition of Twitter may make some customers hesitate, but at the same time, we think it may provide opportunities for new customers.”
Nelson and others believe that Musk can fill a variety of roles while achieving Tesla’s goals. “In our opinion, if anyone has the ability to do this kind of difficult manoeuvre, it has to be Musk,” he said.
Elon Musk’s biggest companies at the moment have to be Tesla and SpaceX. However, Twitter now joins the list of some of the massive companies that he is running. At the moment, there are mixed reactions with regards to whether or not he can handle all firms effectively