According to a new report by Reuters, Elon Musk has identified an interim CEO for Twitter and informed banks who agreed to fund the takeover of $44 billion about his plans to make money from tweets. According to a source who spoke with Reuters, musk has chosen whom he’ll select as the next CEO for Twitter, but the source didn’t name the person. Parag Agrawal was appointed CEO after Jack Dorsey stepped down in November and is expected to remain till the agreement is concluded.
In a report by Reuters, Musk told Twitter chairman Bret Taylor that he had no confidence in the company’s management, which is a position Musk has stated in SEC filings. According to the company’s most recent proxy filing, if the deal is completed and Musk decides to hire new management, Agrawal will receive $38.7 million due to an agreement of his employment contract.
In a report by Reuters, Musk told banks that he would like to develop additional ways to earn money from tweets. He said, for instance, that he would come up with a way to profit from tweets that go viral or contain vital details. He also suggested charging a fee for third-party websites’ use or embedding verified tweets from users.
In The Washington Post, Musk also suggested paying influencers to produce material for TikTok. This has proved to be a lucrative income model for TikTok. Musk is also believed to be interested in providing subscription services via the company.
Musk made big modifications regarding Twitter Blue, the social media giant’s subscription service, in deleted tweets posted earlier in the month. Twitter Blue is presently priced at $2.99 per month. Musk suggested lowering the cost by introducing a dogecoin-based payment option and a ban on advertising. Musk has also said in a deleted tweet that he wanted to gradually wean Twitter away from relying on advertising as a significant part of its income.
Musk has also advised banks that, to reduce costs, he could reduce the salaries of board members and executives at Twitter. As per Reuters, Musk claimed in his appeal to banks that the gross margin of Twitter is much less as compared to other media sites such as Facebook and Pinterest, as well as that they have ways to run the business more effectively and efficiently.
The deal was approved unanimously by the board and is expected to close in the coming year following approval from the regulator and shareholders and “the satisfaction of other normal closing conditions,” according to Twitter. According to an earlier SEC filing, If Musk does not finish the acquisition of Twitter Twitter, he’ll be forced to pay the $1 billion termination cost. Twitter will be able to cover the exact amount subject to certain conditions in the document that outlines the agreement’s requirements.