Tesla Inc TSLA CEO Elon Musk told bankers he plans to cut jobs and costs at Twitter Inc TWTR to boost its bottom line, as he plans to take the microblogging site private for $44 billion, Bloomberg News reported on Thursday, citing people familiar with the matter.
What Happened: Musk did not reveal details about which departments or positions might be affected during the call with bankers, according to the report.
The billionaire entrepreneur, however, discussed ideas to monetize the platform and boost cash flow, including potential subscription services to drive recurring revenue.
Twitter, which reported first-quarter earnings on Thursday, did not offer any outlook or held an analyst call given the pending acquisition by Musk.
An email sent to Tesla and Twitter did not elicit any response at the time of writing the story.
Seeking Profit: The report said Musk had not made any presentations that included plans for job cuts and tweet monetization to Twitter’s board, which evaluated the deal primarily on its price and future financial performance.
Musk told bankers in the call that he would seek financial returns from the deal.
The billionaire entrepreneur on Thursday revealed through regulatory filings that he has recently sold 4.41 million shares in the electric vehicle firm, worth up to $3.9 billion, indicating he is raising funds for the deal and may join hands with one or more equity partners.
Why It Matters: The world’s richest man is paying about $54 a share to buy Twitter, a platform he said is “the bedrock of a functioning democracy” and a place where he has promised to return free speech and debate.
Musk is likely to make some key changes to the microblogging platform as indicated several times in recent months.
Price Action: Twitter shares closed 1.09% higher at $49.1 on Thursday and were trading 0.6% lower after the bell. Tesla closed 0.45% lower at $877.5 on Thursday.
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