Elon Musk dissolves Twitter board of Directors

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Image Source: Fox Business

Elon Musk has come in and established his influence over the social media site by dissolving Twitter’s board of directors.

After purchasing the business this week, the multi-billionaire will serve as its CEO, ending months of negotiations over the $44 billion (£38.3 billion) transaction.

He has worked swiftly to leave his stamp on the company, which is used by journalists and politicians all over the world.

He is thinking about changing, such as how Twitter validates accounts and eliminating positions.

According to The Washington Post, the first round of layoffs, which may affect 25% of the workforce, is currently under discussion.

Musk has terminated top executives to make room for his high-profile pals.

His most recent action will make him the CEO of three businesses. Mr. Musk serves as the CEO of both the rocket company SpaceX and the electric car manufacturer Tesla in addition to his position as Twitter’s top executive.

He has, however, made it known that his employment with the social media firm might be temporary.

Elon Musk is a breathe of fresh air

According to the SEC 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.

Mr. Dorsey resigned from Twitter’s board in May and favored Mr. Musk buying the company.

Jason Calacanis, a technology investor, said he was “hanging around at Twitter a little… during the transition” and altered his Twitter bio to “chief meme officer.”

He polled people on social media about various subjects, including video and advertising.

In response to rumors that Twitter would charge users $20 per month to maintain the blue ticks that signify verified accounts, Mr. Calacanis also inquired how much individuals would be willing to pay to get verified.

Later on Tuesday, Mr. Musk responded “absolutely” when a Twitter user requested that the service delete inactive accounts.

After the takeover, Mr. Musk, also the CEO of electric vehicle manufacturer Tesla, changed his online identity to “Chief Twit.”

According to another filing made on Monday, he is now Twitter’s lone director.

Former board chairman Bret Taylor and former CEO Parag Agrawal are two of the nine disqualified directors.

Martha Lane Fox, the current president of the British Chambers of Commerce and one of the board members declined to comment when contacted.

National security concerns

As Mr. Musk announces ambitions to change how Twitter has controlled the dissemination of information on its platform. Particularly from sources like state media, politicians, and celebrities, his takeover has received considerable attention.

Mr. Musk declared that no changes would be made and that the business would elect a new council to make those decisions.

Democratic Senator Chris Murphy stated on Monday that he had requested the government to evaluate the deal’s national security ramifications. Because of the sizeable ownership owned by Saudi Arabian-affiliated companies, which have a contentious relationship with the US.

With his own money, the money of several other investors, and around $13 billion in debt financing, Mr. Musk funded his acquisition.

Read Also: What’s next for Twitter under Elon Musk?

Analysts claim that the corporation, which has struggled to grow its user base and hasn’t generated a profit in years. This will likely be constrained by the increase in debt.

According to a US government filing, Prince Alwaleed bin Talal bin Abdulaziz Al Saud and the Kingdom Holding Firm are the second-largest investors in the  company.

Before the Musk sale, Prince Alwaleed was a significant Twitter investor. He stated on Twitter that the holding fits with Kingdom Holding Company’s “long-term investment plan.”