Billionaire Elon Musk told the banks that helped buy Twitter that he would crack down on paying executives and boards.
In order to secure the funding, Elon Musk told banks he might crack down on paying Twitter executives and boards in a bid to cut costs.
In addition, he has indicated that he will implement new ways to monetize posts , three people familiar with the matter said, according to a Reuters report .
Musk pitched his proposal to bank officials days after submitting his offer to Twitter on April 14, the sources said. His presentation of his commitments to lenders on April 21 was key to Twitter ‘s board accepting their “final and best” offer from him.
The billionaire convinced the banks that Twitter produces enough cash flow to be able to pay off the debt. In the end, Elon Musk got $13 billion in Twitter-guaranteed loans and $12.5 billion tied to his shares of Teslas, while the rest of the deal was agreed to be paid with his own cash.
Future changes to Twitter
According to Bloomberg News, Musk specifically mentioned job cuts as part of his presentation to banks. However, one of the sources indicated that Musk will not make decisions on job cuts until he takes ownership of the company in late 2022.
Musk also told banks that he plans to develop features to boost business revenue , including new ways to earn money from posts on the social network that contain relevant information or go viral, the sources said.
One of the sources said that Musk has lined up a new CEO, but they have refused to reveal the identity of the person. Parag Agrawal, who was named Twitter CEO in November, is expected to remain in his role until the sale of the social network to Elon Musk is complete .