(Bloomberg) – Elon Musk made his presence known at Twitter’s San Francisco headquarters on Wednesday, posting a video of him walking into the office carrying a kitchen sink and changing clothes. describes his public profile as “Chief Twit”. He is due to meet with employees on Friday, the deadline for his planned $44 billion deal to take the company private.
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The social media platform is expected to be owned by Musk at 5 p.m. New York time on October 28, as attorneys and bankers on both sides race to complete the procedure. paperwork. Leslie Berland, Twitter’s chief marketing officer, sent a memo to employees Wednesday saying Musk will visit the company’s headquarters this week, according to people who received the notice.
“This week Elon is in the SF office meeting people, walking the halls, and staying engaged in the important work you all do,” Berland wrote in the memo. “For everyone else, this is just the beginning of many meetings and conversations with Elon, and you will all hear from him live on Friday.”
Twitter shares rose on these latest signs that billionaire Musk plans to make good on his deal to pay $54.20 a share of the company. On Tuesday, Bloomberg reported that Musk had told bankers he expected the deal to close by the deadline. Banks had been expecting a loan announcement from Musk to borrow $13 billion, with the funds expected to be deposited on Thursday.
Shares rose 1.1% to $53.35 by Wednesday’s close in New York.
Wall Street lenders, led by Morgan Stanley, have been preparing to finance the debt in recent weeks, Bloomberg previously reported. But nothing is certain for the shrewd Musk, who just weeks ago was looking to back out of the deal. These latest developments suggest that he is in the final stages of closing the trade.
At least some of the investors involved in the transaction have transferred money to support the deal, people with knowledge of the matter said. In recent days, Musk’s lawyers have written to investors backing the equity portion of the deal to confirm that it is on track to close ahead of schedule, one of them said. said.
The completion of the transaction will mark the culmination of a months-long saga that has seen Musk amassing a large stake in the company, agreeing to join its board before changing his mind. determined and then embarked on a hasty mission to take over Twitter’s privacy. Besides taking on debt, he’s also rounded up a handful of billionaire friends and other investors to share some of the needed equity, signing a takeover deal while waiving the right to check. Twitter’s finances.
When the market crashed and it became clear that he was overpaying, Musk hit back again, denying the deal alleging that Twitter misled him about the prevalence of fake accounts. After Twitter took him to court in Delaware to force him out, Musk was satisfied and the two sides returned to negotiations.
Many Twitter employees are welcoming the prospect of ownership by Musk with trepidation. Potential investors have been told that he plans to cut 75% of his workforce, now the figure is around 7,500, and that he expects to double revenue within three years, an acquaintance said. belonging to this matter said last week. Another said in recent days there were concerns about significant staff cuts or another reorganization.
Musk will also allow the return of former US President Donald Trump and others who have been removed from the platform as Twitter will relax its content moderation standards, according to one of them.
–With support from Maxwell Adler.
(Updated to add details of the acquisition’s equity in the 7th paragraph. An earlier version corrected Leslie Berland’s title to remove the “per capita” reference in the second paragraph.)
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