The businessman stops buying the social network with debt linked to the shares of his car company
Tesla shares haven’t stopped falling since its founder, Elon Musk, announced the purchase of Twitter. Shares of the electric car company have fallen 40% since that day as the Twitter offering was associated with debt linked to its Tesla stock. For this reason, the businessman has decided to disconnect both companies and will no longer fund his takeover bid on Twitter in this way.
In a statement registered with the US Stock Exchange Commission (SEC), Musk announced that he will fund most of the approximately $44 million (41,000 million euros) he offered for Twitter with money from his pocket and that of others. partners. For example, the debt-financed portion goes from $21,000 million to just 9,000 million. Otherwise, he couldn’t control Tesla’s continued decline, since of that 21,000 million, 12,500 were tied to a loan that guaranteed the automaker’s stock.
His plan now is for current Twitter shareholders, such as its founder Jack Dorsey, to remain partners in the company and contribute to the project, either in cash or in company stock. Although there is still uncertainty about the purchase of the social network, especially after Musk himself questioned his Twitter account and caused the platform to have more fake accounts than promised.
And it’s that recent stock market declines from both Tesla and Twitter have pushed Elon Musk’s fortunes below the $200,000 million mark, according to the latest estimates from the Forbes list of the world’s richest people. The businessman’s assets are mainly concentrated in shares of the two companies, so the movements in the stock markets largely determine his wealth.
Amid this situation, Twitter co-founder and former CEO Jack Dorsey has announced to the company’s board of directors that he will be leaving the social network immediately. It was an expected announcement after he said in November that he would be stepping down as CEO, but it was not known when his departure would take place.
The board of directors then appointed Parag Agrawal as the new head of the social network, until then Director of Technology. With Dorsey’s departure, the company is left without those who founded it in 2006.
The sale of Twitter to Elon Musk did not lead to the departure of Dorsey, on the contrary. The director approved the purchase, assuring Musk was “the only solution” for the future of the platform.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
