Elon Musk has dismissed Twitter’s board of directors, gripping his control over the social media site. The multi-billionaire will become its chief executive after buying the company last week in a $44 billion deal.
Elon Musk is eying reforms that include changes in the way Twitter verifies accounts and layoffs. According to the US publication, The Washington Post, the first phase of job cuts is under deliberation that could impact 25% of the company’s staff.
After taking over Twitter, Musk has sacked some top posts to bring high-profile allies to the company.
According to a filing with the US Securities and Exchange Commission on Monday, Twitter co-founder Jack Dorsey has transferred his entire ownership in the firm, consisting of 18 million shares, worth close to $978 million at the buyout price of $54.20. Dorsey, who resigned from Twitter’s board in May, backed Musk’s decision to buy the company.
After Elon Musk took over Twitter post approval by the company’s former management team, Jack Dorsey tweeted, “Elon is the singular solution I trust. I trust his mission to extend the light of consciousness.”
In principle, I don’t believe anyone should own or run Twitter. It wants to be a public good at a protocol level, not a company. Solving for the problem of it being a company however, Elon is the singular solution I trust. I trust his mission to extend the light of consciousness.
— jack (@jack) April 26, 2022
Meanwhile, Jason Calacanis, the technology investor changed his Twitter bio to “chief meme officer”. He said that he was “hanging out at Twitter a bit… during the transition”.
He took to Twitter to seek opinions on a variety of topics from advertising to video.
Calacanis also asked people how much they would pay to be verified. The question is linked with reports that Twitter might charge people $20 per month to maintain the blue ticks that indicate verified accounts.
Replying to a user requesting the social media site to expel accounts that have remained inactive for more than a year, Musk said “definitely”.
Musk also heads the electric car maker Tesla. He had earlier identified himself as “Chief Twit” on the platform’s bio section but later changed it to “Twitter Complaint Hotline Operator”. A filing on Monday confirmed that he is now the sole director of Twitter. He sacked nine directors of Twitter that included former chairman of the board Bret Taylor and former chief executive, Parag Agrawal.
Baroness Martha Lane Fox, currently president of the British Chambers of Commerce, is among the board members to be removed under the merger agreement.
Analyzing the deal’s national security impact
Musk’s charge over Twitter has led to criticism over how he plans to change the way Twitter has moderated the spread of information on the site, that is, from sources such as state media, politicians, and celebrities. Musk said a new council would be created to judge such decisions and till then no changes would occur.
Twitter will be forming a content moderation council with widely diverse viewpoints.
No major content decisions or account reinstatements will happen before that council convenes.
— Elon Musk (@elonmusk) October 28, 2022
Democrat Senator Chris Murphy stated on Monday that he had requested the government to evaluate the deal’s effects on national security due to the significant stake that Saudi Arabian-affiliated companies hold in the company and the country’s strained relationship with the US.,
Murphy said on Twitter, “We should be concerned that the Saudis, who have a clear interest in repressing political speech and impacting US politics, are now the second-largest owner of a major social media platform. There is a clear national-security issue at stake and CFIUS [the Committee on Foreign Investment in the United States] should do a review.”
Musk arranged for the takeover through his own money, a group of other investors and around $13 billion in debt financing. Analysts are of the view that the increase in debt is likely to impact the firm, which has pushed hard to grow its user base and did not profit in years.
According to a filing with the US government, Prince Alwaleed bin Talal bin Abdulaziz Al Saud and the Kingdom Holding Company are together the second largest investor in the company that has now become private. Prince Alwaleed was also a major Twitter investor before the Musk deal. He has tweeted the stake aligns with Kingdom Holding Company’s “long-term investment strategy”.
Dear friend "Chief Twit" @elonmusk
Together all the way 🤝🏻 @Twitter https://t.co/J9rnd013xz pic.twitter.com/bXo6RUaUwk
— الوليد بن طلال (@Alwaleed_Talal) October 28, 2022
