Elon Musk has promised to drastically reduce the hefty salaries of executives and the board of directors of Twitter Inc. to banks that have agreed to help finance the acquisition of the popular social media medium for $ 44 billion. With this move he will seek to reduce costs, while adding that he will develop new ways to generate revenue from tweets.
Musk made the move to banks seeking securities for the big buy a few days after he took to Twitter on April 14, sources told Reuters. Accepting the banks' binding terms on April 21 was the key to Twitter's acceptance of its "best and final" offer.
Musk had to convince the banks that Twitter had generated enough cash flow to service the loans he was seeking. Finally, he secured $ 13 billion in secured loans against Twitter and a $ 12,5 billion marginal loan linked to his stake in Tesla. Note that he agreed to pay for the remainder of the acquisition with his own cash.
Ambiguity about cuts
Musk's offer to the banks is a first plan and not fixed commitments, the sources said. So the exact cost cuts that Twitter will pursue remain unclear.
Musk tweeted about the removal of the salaries of the members of the board of Twitter, estimates that it could lead to savings of about 3 million dollars.
In his proposal to the banks, Musk also pointed to Twitter's gross profit margin, which is much lower than that of Facebook and Meta Platform's Pinterest, arguing that this leaves significant room for the company to run more economically. way.
Layoffs are coming
Bloomberg News reported earlier Thursday that Musk intends to cut jobs as part of his offer to banks. One source said Musk would not make job cuts until he took over the company later this year.
Musk told banks he also plans to develop operations to boost business revenue, including new ways to monetize tweets that contain important information or go viral, sources said.
The ideas he developed included charging a fee when a website wants to quote or embed a tweet from certified individuals or organizations.
In a tweet earlier this month, Musk suggested a series of changes to Twitter's subscription service, Blue premium, including price reductions, a ban on advertising and the ability to pay with dogecoin cryptocurrency. Twitter's premium Blue service now costs $ 2,99 a month.
In another tweet he also deleted, he added that he wants to reduce Twitter's advertising dependence for much of its revenue.
Source: OT.gr