technology

What does it mean? .. Elon Musk makes Twitter a “private” company


Twitter is now an Elon Musk company, and the billionaire, who also owns several other companies, has said he will make the micro-blogging site a “private company”.

Twitter became “public” in 2013, with a report saying that the CEO of Tesla sought advice from Michael Dell, founder, chairman and CEO of Dell Technologies, to make the company private, and below we explain what this means for Twitter as a company, its employees, and Elon Musk .



The difference between a public and private company

A public company or a publicly listed company has a lot of shareholders. Anyone can buy shares of public companies and trade shares on stock exchanges. A private company is closely owned and has few or one shareholder, and shares are not traded on stock exchanges, so you can’t buy them Unless someone wants to sell it to you legally.

With Musk completing a $44 billion acquisition of Twitter, he will now begin delisting the company’s shares from public shareholders in line with the process of making the social media platform private.

How This Can Help Elon Musk Control Twitter

With Twitter going private, Musk will have full authority to set, remove or modify the rules at his discretion, he won’t have to make quarterly public disclosures about their performance and Twitter will also be subject to less regulatory scrutiny.

How will Elon Musk make Twitter private?

Musk established X Holdings in Delaware to handle the deal, in which the corporate entity is merging with the social media company and buying all Twitter shares, and Musk will be at the head of the company, and according to a report in the New York Times, Twitter shareholders agreed to sell the company in September and agreed to sell Their shares are for him for $54.20 per share offered.

They can receive the cash value of their shares, and Twitter will be deleted from the New York Stock Exchange and its shares will no longer be traded on public markets from November 8.

What happens to Twitter management?

Twitter’s current board is likely to be dissolved and Musk is expected to create a new board for operations, reports indicate that Musk has “sacked” CEO Parag Agrawal, Vijaya Jade, chief legal and policy officer, and Ned Segal, Twitter’s chief financial officer. , Shaun Edgett, general counsel, and Musk and Agrawal clashed publicly and privately earlier this year.

The New York Times reported that Agrawal could receive $60 million, Sejal $46 million, and Jade $20 million.

What will happen to the employees?

Reports suggest that Musk is looking to cut staff and could fire up to 75% of Twitter’s employees, and Twitter has about 7,500 employees globally. As the company becomes a private company, employees will be given cash bonuses.

Debt repayment

Musk borrowed a lot of money to buy Twitter, as banks loaned him $12.5 billion and stock investors made about $7.1 billion for the deal.

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