Elon Musk closes Twitter deal and immediately fires top executives
The billionaire tweeted that “the bird is freed” after completing a $44 billion deal and firing CEO Parag Agrawal, CFO Ned Segal, and others.
Elon Musk fired several Twitter Inc. executives after completing his takeover of the company, according to people familiar with the matter, ending an unusual corporate battle and placing one of the world’s most influential social networks under potential sweeping changes.
Elon Musk fired Chief Executive Parag Agrawal and Chief Financial Officer Ned Segal after the deal closed, people said. Musk also fired Vijaya Gadde, Twitter’s top legal and policy executive, and Sean Edgett, the chief legal officer. A Twitter spokesperson did not immediately comment.
Hours after these actions, Musk tweeted that “the bird is freed,” apparently referring to Twitter, whose logo features a blue bird. The Securities and Exchange Commission filing on Friday confirmed the deal closed on Thursday and that Twitter is now part of Musk’s X Holdings I Inc.
Musk initially agreed to buy Twitter in April for $44 billion, then threatened to abandon the deal before reversing course this month and committing to complete the acquisition. He had previously indicated dissatisfaction with some of Twitter’s top leadership, at one point responding to an Agrawal tweet with a poop emoji. He also used the platform to mock Ms. Gadde, the chief legal officer, by posting an image with text repeating claims that Twitter has a left-leaning political bias.
It was not immediately clear who would fill the top positions left vacant on Thursday. CNBC had previously reported the departures of Agrawal and Segal.
The deal, which will return Twitter to private ownership, expands Musk’s business empire, including Tesla Inc., the world’s most valuable car company, and Space Exploration Technologies Corp. (SpaceX). Musk, Twitter’s largest individual shareholder, had previously said he would finance the acquisition mostly in cash, partly from co-investors, and $13 billion in debt.
This week, signs emerged that Musk was nearing completion of the acquisition by Friday. According to The Wall Street Journal, banks began sending funds to support the deal. Musk also changed his Twitter bio to “Chief Twit,” visited the company’s headquarters in San Francisco, and posted a statement outlining his vision for advertisers.
The closing of the deal ends a months-long saga over whether Musk would buy the company. The acquisition also places one of the world’s most prominent social media platforms under the control of the world’s richest person, with implications for the future of online communication.
Musk, who describes himself as an absolutist of free speech, has promised to reduce content moderation in favor of greater freedom of expression. However, such an approach could lead to conflicts with advertisers, politicians, and users who prefer a more moderated platform.
In a message to advertisers on Twitter on Thursday, Musk said he was buying the company to create “a common digital town square where a wide range of beliefs can be debated in a healthy manner.” He added that Twitter “cannot become a free-for-all hellscape where anything can be said without consequences!”
Musk said the platform should be “warm and welcoming to all,” and suggested Twitter could allow users to “choose their desired experience according to their preferences, much like choosing movies or video games for all ages.”
Musk’s decision to proceed with the takeover came just two weeks before a trial in Delaware was set to begin over the stalled deal. The judge overseeing the case agreed to pause proceedings, granting Musk additional time to complete the acquisition. The judge gave Musk until October 28 to close the deal or said a trial would be scheduled in November.
In April, Musk offered to buy Twitter at $54.20 per share—above its then-market valuation. In the months following the agreement, Twitter faced Musk’s attempts to withdraw from the deal, a whistleblower complaint from the former head of security alleging safety and privacy issues, and unsuccessful negotiations to reduce the price.
The New York Stock Exchange suspended trading in Twitter shares from Friday. Shares closed Thursday at $53.70.
Musk’s takeover leaves major questions about the platform’s future, including how he may revise its business model and implement changes to content moderation.
Like other social media companies, Twitter relies heavily on digital advertising and has faced headwinds due to broader economic uncertainty. As part of the deal, it will also take on billions in debt, with loan repayments adding costs to a company that has posted losses in eight of the last ten fiscal years.
As a result of the deal, Twitter will be burdened with billions in debt.
The transaction evolved into an unprecedented business drama. Musk agreed to buy Twitter in April, but after signing the merger agreement, he accused the company of misrepresenting the prevalence of spam and bot accounts on the platform, which Twitter denied.
He formally attempted to back out of the deal in July, prompting Twitter to sue him to enforce the original agreement. Musk filed a counterclaim.
In early October, Musk abruptly dropped the litigation without public explanation. After withdrawing, he tweeted that “buying Twitter is an acceleration to creating X, the everything app.” He had previously proposed creating a social network called X.com if he did not acquire Twitter.
Eric Talley, a law professor at Columbia University, said multiple factors had built up against Musk, including court rulings denying some of his discovery requests. Delaware Chancellor Kathaleen McCormick described some of his requests as “absurdly broad.”
“He spent months trying various ways to get out of the deal,” Talley said. “All those exits started closing, and some closed entirely.”
Musk’s specific plans for the company remain unclear. He has previously suggested taking Twitter public again within a few years.
By taking Twitter private, the billionaire entrepreneur is likely to take greater risks to reshape the business. “It won’t be easy,” said Youssef Squali, a senior internet analyst at Truist Securities. “He may put it aside for a couple of years and really rebuild it.”
Musk has suggested shifting Twitter away from an advertising-based model toward other revenue streams, including subscriptions. Advertising accounted for more than 90% of Twitter’s revenue in the second quarter.
He has said he would allow former President Donald Trump back on the platform, although Trump said he had no intention of returning. Twitter banned Trump after the January 6, 2021 U.S. Capitol attack, citing risks of further incitement to violence.
“Obviously, Twitter is not going to become some right-wing hellscape. It aims to be as inclusive as possible,” Musk said in messages revealed during the legal battle.
Uncertainty about Musk’s takeover has unsettled many Twitter employees. The company told staff they would hear from Musk on Friday, according to an internal memo reviewed by the publication.
Based on reporting by The Wall Street Journal