Technology

Reports: Elon Musk takes control of Twitter, immediately fires CEO

Elon Musk has taken control of Twitter and ousted its CEO and at the least two different high executives, in line with quite a few stories.

Two individuals aware of the deal advised The Associated Press Thursday night time that CEO Parag Agrawal and Twitter’s chief monetary officer and high lawyer had been proven the door.

The sources would not say if all of the paperwork for the deal, initially valued at $44 billion, had been signed or whether or not the deal had closed. But they mentioned Musk is in cost of the social media platform. Neither supply wished to be recognized as a result of of the delicate nature of the personnel strikes.

Twitter did not immediately reply to a request for remark when reached by CBS News, however Musk himself tweeted late Thursday that “the bird is freed,” referring to Twitter’s well-known brand and indicating he was certainly in cost.   

The transfer to shut the deal, which got here a day earlier than a court-imposed deadline to finalize the transaction, caps a tumultuous six-month pursuit during which the billionaire launched his shock bid for Twitter this spring, solely to reverse course in July and declare he was withdrawing it.

His swift dismissal of Twitter’s high two executives punctuates what is predicted to be a interval of dramatic change on the social media company. And the place Musk — a serial entrepreneur whose firms have disrupted the funds, auto and space exploration sectors — takes Twitter now could be anybody’s guess.

Now for the arduous half

“As we have discussed, the easy part for Musk was buying Twitter,” Wedbush analyst Dan Ives mentioned in a report. “The difficult part, and Everest-like uphill battle looking ahead, will be fixing this troubled asset.”

Ives added that the $44 billion price ticket on the acquisition “will go down as one of the most overpaid tech acquisitions in the history of M&A deals.” He values Twitter at nearer to $25 billion.

With Musk taking the helm, consideration will flip to what steps he can take to revitalize Twitter, whose development has slowed sharply in recent times. In the quick time period, that might contain shedding as much as three-quarters of Twitter’s workforce, The Washington Post reported final week. Musk, who has been vocal in saying he overpaid for Twitter, may discover it tempting to slash labor prices as a solution to steadiness the books.


Elon Musk makes the rounds at Twitter HQ as deadline approaches for acquisition

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More difficult will probably be devising a technique to drive development at Twitter, whose roughly 238 million common customers pale compared to different social networks like Facebook and TikTok. On that entrance, Musk has beforehand floated the concept of making a “super app” like WeChat, which in China is used for all the things from banking and hailing a journey to purchasing groceries and chatting with associates.

“Musk took over Twitter last night and now major questions will remain around changes to the platform, monetization efforts, the level of headcount cuts on the horizon and the long-term strategy around the ‘X’ App and building a potential WeChat model down the road,” Ives mentioned.

Also remaining to be seen is how Musk may change Twitter’s consumer insurance policies. In launching his unsolicited bid in April, he highlighted the company’s “potential to be the platform for free speech around the globe,” whereas noting that Twitter in its present kind “will neither thrive nor serve this societal imperative.” 

Will Donald Trump return?

That crucial may embrace permitting former President Donald Trump again on Twitter, which completely suspended him from the platform final year within the aftermath of the Jan. 6 assault on the U.S. Capitol, citing the danger of additional violence.

“I am very happy that Twitter is now in sane hands, and will no longer be run by Radical Left Lunatics and Maniacs that truly hate our country,” Trump mentioned Friday in a post on Truth Social, the conservative-leaning social community backed by his media company. “Twitter must now work hard to rid itself of all of the bots and fake accounts that have hurt it so badly. It will be much smaller, but better.”

Musk, in the meantime, had been signaling that the deal was going by means of. He strolled into the company’s San Francisco headquarters Wednesday carrying a porcelain sink, modified his Twitter profile to “Chief Twit,” and tweeted “Entering Twitter HQ — let that sink in!”

And in a single day the New York Stock Exchange notified traders that it’s going to droop buying and selling in shares of Twitter earlier than the opening bell Friday in anticipation of the company going personal underneath Musk.

— Alain Sherter contributed reporting.

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