Elon Musk is said to confirm his desire to own
when he spoke to employees of the social media company on Thursday, according to a person familiar with the matter.
The CEO is expected to respond to pre-sent employee inquiries in about an hour at a virtual Twitter hand-in-hand meeting This person said Thursday morning West Coast time. In addition to reiterating his interest in owning the company and his views on its importance in the world, Mr Musk is likely to clarify recent comments about remote work and the topic. covered aspects of his strategy for Twitter, including the role of advertising and subscriptions.
Twitter shares rose about 5% in after-hours trading following The Wall Street Journal’s report on Mr. Musk’s much-anticipated remarks.
Mr. Musk made waves earlier this month when he told employees of Tesla and SpaceX, his space exploration company, spend 40 hours a week in the office and suggests that those who cannot find work elsewhere. If the topic comes up, he is expected to tell Twitter employees that the comments primarily apply to certain executives and that many of the engineers at his company have worked since far, this he’s fine.
While Mr. Musk criticized Twitter for being too reliant on ads, he is expected to emphasize that the company should have multiple sources of income, with advertising and subscriptions among them, the person said.
Mr. Musk’s always unpredictable plans are subject to change, and the question-and-answer format may prompt him to expand on these and other topics. Other issues employees focus on include how Mr Musk plans to harass police if he reduces censorship on Twitter as he has said, as well as the possibility of job cuts.
Musk informed Twitter and Wall Street employees whether he would follow through on a deal to buy the social networking platform worth $44 billion.
That has sent the spread between the company’s share price and its purchase price of $54.20 a share, reflecting fears that the deal will fall apart. Twitter shares closed Wednesday at $37.99.
Are from agree to the deal in April, he questioned Twitter’s estimate of how many of its users are bots and last week threatened to terminate the transaction in a letter accusing the company of not complying with his request for data on spam accounts. Twitter at the time said it was continuing to share information with Musk and that it planned to enforce the merger agreement.
Earlier, Mr. Musk abandoned a plan to rely on margin loans backed by his Tesla stock and increase the equity he is bringing into the deala move that some see as a step forward to follow.
Twitter, has estimated that not more than 5% Among its daily active users is the bot, which is in the process of giving him access to extensive data for his team to review. Meanwhile, his team worked closely with Twitter executives as it developed a business plan.
It is not known how much time Mr Musk will spend on the bot issue on Thursday.
While his appearance at the meeting indicated a commitment to the deal, it’s still possible he’ll seek to renegotiate with Twitter once his team has analyzed the data. Twitter have the right to sue him to comply with the existing agreement.
Twitter is aiming to schedule a shareholder vote on the deal later this summer and close it soon after, assuming all goes to plan.
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Appears on June 16, 2022, print edition as ‘Musk confirms he wants to own Twitter.’