Elon Musk’s ownership of Twitter begins with firings and a lot of uncertainty

Elon Musk bought Twitter Inc. (TWTR.N) on Thursday. He fired top executives and didn’t say much about how he plans to achieve the lofty goals he has set for the popular social media platform.

The CEO of an electric car company called Tesla Inc. (TSLA.O) has said that he wants to “beat” spam bots on Twitter . Make the algorithms that decide how content is shown to users public, and stop Twitter from becoming an a place . Where hate and division can grow, even though he is trying to limit censorship .

Musk hasn’t said how he plans to do all of this or who will run the company. He has said that he wants to cut jobs . So the approximately 7,500 people who work for Twitter are worries about their future.

He also said on Thursday that he didn’t buy Twitter to make more money . But “to try to help humanity, whom I love.”

People who know about the situation say that Musk fired Twitter’s CEO ,

Parag Agrawal, CFO Ned Segal, and head of legal affairs and policy, Vijaya Gadde. He said that they had misled him and Twitter investors about the number of fake accounts on the social media platform.

The deal went through while Agrawal and Segal were at Twitter’s headquarters in San Francisco . And they were escort out when it did. Twitter, Musk, and the executives did not answer questions right away.

‘CHIEF TWIT’

Before the $44 billion deal was finalist, Musk walk into Twitter’s headquarters on Wednesday with a big smile and a porcelain sink in his hands. He then tweeted, “Let that sink in.” He change his Twitter profile description to “Chief Twit.”

He also tried to reassure employees that there wouldn’t be a lot of layoffs . And he told advertisers that his past criticism of Twitter’s rules for content moderation wouldn’t hurt the site’s popularity.

“It’s clear that Twitter can’t turn into a place where anyone can say whatever they want without any consequences!” Musk wrote an open letter to advertisers on Thursday. Musk has said that he wants to use Twitter to build a “super app” that can do everything from send money to shop to get rides.

On Tesla’s call with analysts on Oct. 19,

Musk said that Twitter’s long-term potential is ten times greater than its current value. But Twitter is having trouble keeping its most active users, who are vital to the business, interested.

These “heavy tweeters” make up less than 10% of all users each month, but they are responsible for 90% of all tweets and half of all revenue worldwide.

Musk also said in May that he would lift the ban on Donald Trump, who was kick off the platform after the attack on the U.S . Capitol, but Trump has said he won’t come back. Instead, he has made Truth Social, his own social media app.

A request for comment from Reuters was not answered right away by a Trump representative.

A SAGA

The deal is the end of a long story with a lot of twists and turns that made people doubt that Musk would finish the deal. It start on April 4, when Musk said he own 9.2% of the company. This made him the biggest shareholder.

The richest person in the world then agree to join Twitter’s board . But at the last minute he change his mind and instead offered to buy the company for $54.20 per share. Twitter wasn’t sure if this was another one of Musk’s cannabis jokes or not.

Musk’s offer was real, and in April, the two sides made a deal at the price he suggested in just one weekend. This happened without Musk doing any due diligence on the company’s confidential information, as is normal in an acquisition.

Over the next few weeks,

Musk had second thoughts. He publicly stated that Twitter’s regulatory filing estimate of fewer than 5% of its monetizable daily active users . For spam accounts was too low. His lawyers claimed Twitter didn’t provide the situational information he requested.

On July 8, Musk told Twitter that he was ending their deal because Twitter had lied to him about the bots and would not work with him. Four days later, Twitter sued Musk in Delaware, where the company is incorporate , to force him to finish the deal.

By then, shares of social media companies and the stock market as a whole had drop . Because people were worries that the Federal Reserve’s plan to raise interest rates to fight inflation would send the U.S. economy into a recession.

Twitter said that Musk had buyer’s remorse because he wanted out of the deal because he thought he had paid too much.

Most legal experts said Twitter had the best case and would probably win in court. Even after Twitter’s former security chief, Peiter Zatko, came forward as a whistleblower in August and said that the company didn’t tell people about problems with its security and data privacy, their view didn’t change.

On October 4, just before Musk was to be questioned by Twitter’s lawyers before their trial started later that month, he did another about-face and offered to finish the deal as promised. He was able to do that just one day before the Delaware judge’s deadline of Oct. 28 for him to avoid going to trial.

Twitter’s stock ended trading in New York on Thursday up 0.3% at $53.86, which was a little less than the $54.20 per share deal price. On Friday, the stock will no longer be traded on the New York Stock Exchange.

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