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What changes can we expect now that Elon Musk has taken over Twitter?

Twitter-Elon Musk

Musk is taking Twitter private after failing to take Tesla private. He is delisting the company’s stock and removing it from the hands of public shareholders as part of his $44 billion acquisition of the social media service, which closed on Thursday.

Making Twitter a private company provides Musk with some benefits. Privately held companies, unlike publicly traded companies, are not required to make quarterly public disclosures about their performance. They are also less regulated and can be more tightly controlled by an owner. That means Musk can take over Twitter, including changing the platform’s content rules, finances, and priorities, without having to worry about investors’ concerns.

Here’s how Twitter will change under Musk.

Elon Musk is taking Twitter private in what way?

As part of his acquisition of Twitter, Musk is merging Twitter with X Holdings, a corporate entity he established in Delaware to handle the transaction. After purchasing all of Twitter’s stock, X will control the service while Musk will control the holding company.

What happened to the board of directors of Twitter?

Following the completion of the transaction, Twitter‘s board of directors will be dissolved, and its nine members will no longer preside over the company’s operations. Musk will almost certainly appoint a new board of directors comprised of friends and investors who contributed to the acquisition’s funding. The new board will be in charge of charting Twitter’s course as a private company.

What will become of Twitter’s top executives?

Musk has already begun cleaning the house, with several top Twitter executives fired on Thursday.

Among those let go is Twitter CEO Parag Agrawal, who has clashed publicly and privately with Musk. When Musk complained earlier this year that Twitter had an unchecked spam problem, Agrawal responded via Twitter. Musk’s response was a pop emoji.

According to a court filing, Agrawal texted Musk, telling the billionaire that his criticisms were harming Twitter.

Musk retorted, “This is a waste of time.”

According to the merger agreement, Agrawal could receive a golden parachute worth approximately $60 million, Segall could receive $46 million, and Gade could receive approximately $20 million. It was unclear whether Musk intended to make the payments.

What about the employees of Twitter?

Twitter employs approximately 7,500 people. For months, some of them have been concerned about the company’s sale to Musk. As their new owner takes over, they may face layoffs or job changes.

Their pay is also expected to change. Employees are usually given stock options in the company. However, with the delisting of Twitter’s stock, employees are set to be cashed out for shares they already own and paid with cash bonuses in the future, rather than the stock options they were supposed to receive, according to the merger agreement. Some employees are concerned that Musk may not honor the agreement.

As a private company, what financial pressures will Twitter face?

Twitter will face increased public scrutiny if it goes private because it will no longer be required to make quarterly disclosures about the health of its business. This will give Musk some leeway as he changes his Twitter handle.

However, the banks that lent him $12.5 billion for the deal will put pressure on him to start repaying his debt. According to financial analysts, the cost of repaying those loans could be as much as $1 billion per year.

THE FREE MEDIA

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