Elon Musk raises his personal contribution to buy back Twitter

Accordingly, Musk is contacting the founder and former CEO of “Blue Bird” Jack Dorsey and some others to provide financial support or transfer shares to complete this deal. In a letter to the investors behind the company, Musk confirmed his commitment to completing the agreement the two sides agreed to.

Twitter shares jumped more than 5% after the news went public, while Tesla fell about 1%.

According to CNBC, Elon Musk is expected to become the interim CEO of Twitter within a few months of closing the deal.

The deal to buy back the social networking platform is embroiled in controversy after the Tesla CEO proposed a buyback in April. The company’s stock is currently trading below its $54.20 buyback price, indicating investors have relatively low confidence that the deal can reach that price.

In early May, Musk caused a stir when he said he would “pause” a $44 billion deal to review the rate of fake or spam accounts on the platform. Earlier, the world’s richest person in a conference said that the acquisition of Twitter should have had a lower price.

In its first-quarter report, Twitter said there were a number of “fake and spam accounts” on its platform. “We performed an internal review of a number of sample accounts and estimated that the average rate for fake and spam accounts in the first quarter of 2022 was 5% less than the number of legitimate monetizing users. daily activity (mDAU)”.

In addition, the social networking company admitted to “overstating” the number of users of the platform, from 1.4 million to 1.9 million users in the past 3 years.

On May 25, Twitter shareholders agreed not to re-appoint Egon Durban, co-CEO of Silver Lake to the company’s Board of Directors. Durban is a longtime business partner and business advocate for companies run by Musk.