Fri, April 29, 2022
STORY: Tesla CEO Elon Musk told banks - that agreed to help fund his $44 billion acquisition of Twitter - that he could crack down on executive and board pay at the social media company.
That’s according to three sources familiar with the matter.
Musk made the pitch as he tried to secure debt for the buyout - days after submitting his offer to Twitter earlier this month, according to sources.
While the plan he outlined was reportedly thin on detail, sources said Musk told the banks he plans to develop features to grow business revenue, including new ways to make money out of tweets that contain important information or go viral.
Ideas he brought up included charging a fee when a third-party website wants to quote or embed a tweet from verified individuals or organizations.
In the end, he clinched 13 billion dollars in loans secured against Twitter and a $12.5 billion margin loan tied to his Tesla stock. He agreed to pay the rest with his own cash.
Musk has tweeted about eliminating the salaries of Twitter's board directors, which he said could result in about $3 million in cost savings.
In his pitch to the banks, Musk also pointed to Twitter's gross margin, which is much lower than Facebook or Pinterest, arguing this leaves plenty of space to run the company in a more cost-efficient way.
A representative for Musk declined to comment.
MUSK TAKES AIM AT BIDEN’S COUNTER-DISINFORMATION BOARD
admin 29 April 2022
Elon Musk, who has agreed a $44bn takeover of Twitter, has expressed dissatisfaction with the Biden administration’s newly announced Disinformation Governance Board.
The body, part of the Department of Homeland Security, will focus on countering disinformation from Russia and from human smugglers targeting its southern border, the AP reported.
In response to a tweet from a rightwing provocateur comparing the board to the Nazis, Musk simply replied: “Discomforting”. Responding to another tweet calling the “censorship board[‘s]” executive director Nina Jankowicz a “radical leftist”, he responded: “This is messed up”.
Such a response may be expected from a self-proclaimed “free speech absolutist”, who said that SpaceX’s Starlink would not block Russian state media in Ukraine “unless at gunpoint” (though Musk’s commitment to free speech on business matters has been questioned by several commentators).
Russian disinformation seems like the most obvious friction point as the invasion of Ukraine continues. It is unclear whether measures in place on Twitter, such as labelling state-affiliated sources, would be seen as infringing on free speech.
It is possible that Musk will find a way to support the board’s approach as Twitter’s owner. His definition of “free speech” seems vague and he has suggested it depends on the legal status of speech.
If the board’s approach to disinformation is framed in terms of suggestions rather than edicts, it is also possible that both sides can avoid losing face. Musk may not have a board to deal with if Joe Biden loses the next presidential election. Or if his deal for Twitter, which still relies on him stumping up $21bn in cash to contribute to the buyout, falls through.
admin 29 April 2022
Elon Musk, who has agreed a $44bn takeover of Twitter, has expressed dissatisfaction with the Biden administration’s newly announced Disinformation Governance Board.
The body, part of the Department of Homeland Security, will focus on countering disinformation from Russia and from human smugglers targeting its southern border, the AP reported.
In response to a tweet from a rightwing provocateur comparing the board to the Nazis, Musk simply replied: “Discomforting”. Responding to another tweet calling the “censorship board[‘s]” executive director Nina Jankowicz a “radical leftist”, he responded: “This is messed up”.
Such a response may be expected from a self-proclaimed “free speech absolutist”, who said that SpaceX’s Starlink would not block Russian state media in Ukraine “unless at gunpoint” (though Musk’s commitment to free speech on business matters has been questioned by several commentators).
Russian disinformation seems like the most obvious friction point as the invasion of Ukraine continues. It is unclear whether measures in place on Twitter, such as labelling state-affiliated sources, would be seen as infringing on free speech.
It is possible that Musk will find a way to support the board’s approach as Twitter’s owner. His definition of “free speech” seems vague and he has suggested it depends on the legal status of speech.
If the board’s approach to disinformation is framed in terms of suggestions rather than edicts, it is also possible that both sides can avoid losing face. Musk may not have a board to deal with if Joe Biden loses the next presidential election. Or if his deal for Twitter, which still relies on him stumping up $21bn in cash to contribute to the buyout, falls through.
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