Good luck, Tweeps: Elon Musk is officially in charge.
The billionaire provocative completed his much-controversial deal on Thursday, six months after he initially announced the purchase of the company.
Lots of stores confirmed news on Thursday night, though two Twitter employees told The Daily Beast they have yet to receive confirmation from their bosses.
“As usual, we were the last to know,” one of them said.
Musk originally signed the deal in April, but he tried to walk away from the deal by claiming that the company lied about the number of fake accounts on its platform. Twitter sued Musk in a Delaware court in July, hoping a judge would force him to uphold the $44 billion settlement. (Musk filed the lawsuit himself.) The lawsuit went to trial this month, until Musk abruptly agreed to do the deal for an initial purchase price of $54.20 per share.
But the drama did not end there. Last week, washington articles report that Musk had launched a plan to lay off up to 75% of Twitter’s workforce when he took power – a drastic cutback that experts say could threaten the core of the company’s operations. (Musk reported Review plans for this week.)
Employees responded to the report with nervous humor, tweeting about whether the company’s San Francisco headquarters might be be changed enter the Spirit Halloween store and Fleer about its future with a meager staff.
Offline, an existing employee is less inclined to joke. “It’s crazy to buy something just to burn it down,” she told The Daily Beast, speaking on condition of anonymity. “That’s not sustainable, it can’t run at 25% capacity.”
The employee added that she and her colleagues are worried about Musk’s impending ownership, as they “have heard terrible stories about Tesla.”
A former employee who recently left Twitter after growing increasingly worried about a future merger said that none of her colleagues were happy about the acquisition. “It’s a mix of ‘I want to leave to protest’ and just, ‘Let me find another job,'” she told The Daily Beast.
Never a joker, Musk stopped by Twitter’s offices Wednesday to bring — for reasons unknown — a washbasin; he posted a video his entrance with the caption, “Enter Twitter HQ – let that sink in!” The billionaire also changed his profile description to “Chief Twit.”
According to an email to staff get of CNN Business, the company’s chief marketing officer, Leslie Berland, explained Musk’s presence “is just the beginning of many meetings and conversations”.
“If you’re in SF and see him around, say hi!” she wrote, adding that their soon-to-be boss will talk to employees over the weekend.
It’s unclear if Musk has any immediate changes to the company. He previously pledged to restore Donald Trump’s account (which was suspended after the January 6 uprising), otherwise reducing censorship and expanding the platform’s revenue streams. Just last week, he tweeted and then deleted a photo of himself, Trump, and scandal-ridden rapper Kanye West dressed as the Three Musketeers and pointing to the names of his respective social media companies. surname. “In retrospect, it was inevitable,” he wrote, of the trio.
Musk has previously stated that buying Twitter is a stepping stone to creating an app he calls “X” or “everything app” – similar to WeChat, which dominates much of online life in China. Country. The purpose of the app, he said on a podcast in May, will be to serve as a “global town square” that can also process payments. He then suggested that the app’s user base could reach at least a billion people.
Musk is also inheriting a platform with weak positioning capabilities. Reuters report on Tuesday, Twitter’s own internal research showed that so-called “high-tweet people” —a fraction of users who “generate 90% of all tweets and half of global revenue” — are at ” absolute decline”.
In a research note on Thursday, Wedbush Securities analyst Dan Ives pegged the company’s value at $25 billion, just over half what Musk is tapping into. “The $44 billion price tag for Twitter will drop to one of the highest paying tech acquisitions in the history of the company.” [mergers and acquisitions] trading on the street,” he wrote.
Even Musk has admitted to overpaying the struggling company, saying on a recent Tesla earnings call: “Although, obviously, me and other investors are clearly overpaying. much for Twitter right now, but the long-term potential for Twitter is in my opinion an order of magnitude larger than its current value. “