Tech

Elon Musk Is Using Twitter Private: All You Need To Know


Twitter is now a Elon Musk companies and billionaires, who also own other companies, will make the microblogging site private. Twitter went public in 2013, the same year another public company, Dell, went private. One report said Tesla CEO sought advice from Michael Dellfounder, chairman, and chief executive officer of Dell Technologies, to take the company private.
In this article, we explain what could happen to Twitter and its employees since it is now owned by Musk.
Difference between public company and private company
A public company, or publicly listed company, has many shareholders. Any person can buy shares of public companies and shares are traded on stock exchanges. A private company is closely organized and has a few or one shareholder. Stocks don’t trade on exchanges so you can’t buy them unless someone legally wants to sell them to you.
With Musk ended with a $44 billion acquisition of Twitter, he will now begin delisting the company’s stock and take it out of the hands of public shareholders in a process that brings the social media platform back to life. become private.
What does Elon Musk mean?
With Twitter going private, Musk will have full authority to make, remove, or tweak the rules to his liking. He won’t have to make quarterly public disclosures about their performance, and Twitter will also be less regulated.
How does Musk use Twitter in private mode?
Musk founded X Holdings in Delaware to handle the deal. The corporate entity is merging with the social media company and is buying the entire stock of Twitter. Musk will take the helm of the company.
According to a report in the New York Times, Twitter shareholders approved the sale of the company in September and agreed to sell their shares to him at an offer price of $54.20 a share. They can get the cash value of their shares. As mentioned, Twitter will be removed from New York Stock Exchange and its shares will no longer trade on the public market as of Nov.

What happens to the Twitter board
Twitter’s current board of directors will likely be dissolved, and Musk is expected to form a new board to operate on. Reports suggest that Musk has ‘fired’ the CEO Parag Agrawal, Vijaya Gaddeleading legal and policy executives, Ned Segal, CFO of Twitter, and Sean Edgett, general counsel. Musk and Agrawal clashed publicly and privately earlier this year.
The New York Times reports that Agrawal could get $60 million, Segal $46 million, and Gadde $20 million.
What happens to employees?
Reports suggest that Musk is looking to cut staff and that he could lay off up to 75% of Twitter’s employees. Twitter has about 7,500 employees globally. With the company going private, employees will be rewarded with cash.
Pay
Musk borrowed a lot of money to buy Twitter. Banks lent him $12.5 billion, and equity investors provided about $7.1 billion for the deal. Musk will have an enormous task to pay off these debts. He can sell company branches/services to pay off debt.

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