Elon Musk told Banks that agreed to help fund the acquisition of Twitter Inc. worth $ 44 billion that he could take action against the executive and pay the council in social media companies in the urge to cut fees, and will develop new ways to monetize tweet, three people who are familiar with the problem This is said.
Musk made a pitch to the lender when he tried to secure the debt to purchase a few days after sending his offer to Twitter on April 14, the source said. Submission of bank commitment on April 21 is the key for the Twitter council who accepts the “best and most recent” offer.
Musk must convince the bank that Twitter produces sufficient cash flow to serve the debt he is looking for. In the end, he won a loan of $ 13 billion secured against Twitter and a $ 12.5 billion margin loan associated with his Tesla shares. He agreed to pay the remaining considerations with his own money.
Pitch Musk to the bank is its vision rather than a firm commitment, said the source, and the proper cost cut that he will pursue as soon as he has Twitter remains unclear. The plan he described to a thin bank with details, the source added.
Musk has tweeted about eliminating the salary of the Twitter board director, which he said could produce around $ 3 million in cost savings. Twitter stock -based compensation for 12 months ended December 31, 2021 was $ 630 million, an increase of 33% from 2020, the company’s submission showed.
In the tone to the bank, Musk also refers to the dirty margin of Twitter, which is much lower than colleagues such as Meta Platform Inc’s Facebook and Pinterest, for this reason leaving a lot of space to run the company in a more cost-effective way.
The source asks for anonymity because of the confidential problem. Musk representatives refused to comment.
Bloomberg News reported earlier on Thursday that Musk specifically mentioned the work cut as part of the tone to the bank. One source said that Musk would not make decisions about work cutting until he assumed the ownership of the company later this year. He continued the acquisition without having access to secret details about the company’s financial performance and the number of employees.
Musk told the Bank -bank that he also planned to develop features to grow business income, including new ways to make money from tweets that contain important information or become viral, the source said.
The ideas that he brought include imposing costs when a third -party website wants to quote or embed tweets from verified individuals or organizations.
In the tweet earlier this month he then deleted, Musk suggested a raft of changes to the Twitter Blue Premium social media subscription service, including cutting the price, prohibiting advertisements and providing options to pay at Cryptocurrency Dogecoin. Twitter premium blue service is now worth $ 2.99 per month.
In another tweet he deleted, Musk said he wanted to reduce Twitter’s dependence on advertisements for most of his income.
Musk, whose net worth is set by Forbes of $ 246 billion, has indicated that he will support banks in marketing syndicated debt to investors, and that he can uncover more details of his business plans for Twitter later, the source said.
Musk has also been a new executive head for Twitter, one of the sources added, refused to mention the person’s identity.
Too risky for several banks
Head of Executive Tesla Inc. also told the Bank -Bank that he would look for moderation policies on social media platforms that were as free as possible in the legal constraints of each Twitter jurisdiction operating, the source said, the position that Musk had repeated publicly.
Twitter loans of $ 13 billion are equivalent to seven times the 2022 Twitter income before interest, tax, depreciation, and amortization. This is too risky for some banks that decide to participate only in margin loans, the source said.
