Musk posts video of himself strolling into Twitter HQ

PTI, Oct 27, 2022, 10:22 AM IST

Elon Musk posted video Wednesday showing him strolling into Twitter headquarters ahead of a Friday deadline to close his $44 billion deal to buy the company.

Musk also changed his Twitter profile to refer to himself as “Chief Twit” and his location as Twitter headquarters, which is based in San Francisco. The video showed him carrying a sink through a lobby area.

“Entering Twitter HQ – let that sink in!” he tweeted.

A court has given Musk until Friday to close his April agreement to acquire the company after he earlier tried to back out of the deal. Neither Musk nor Twitter has said if the deal is closed yet.

Despite Musk’s splashy entry to headquarters, it wasn’t clear yet whether his purchase of Twitter had been finalised. Twitter confirmed that Musk’s video tweet was real but wouldn’t comment further. Alex Spiro, Musk’s lead lawyer, didn’t immediately return a request for comment.

The Washington Post reported last week that Musk told prospective investors that he plans to cut three quarters of Twitter’s 7,500 workers when he becomes owner of the company. The newspaper cited documents and unnamed sources familiar with the deliberation.

One of Musk’s biggest obstacles to closing the deal was keeping in place the financing pledged roughly six months ago.

A group of banks, including Morgan Stanley and Bank of America, signed on earlier this year to loan $12.5 billion of the money Musk needed to buy Twitter and take it private. Solid contracts with Musk bound the banks to the financing, although changes in the economy and debt markets since April have likely made the terms less attractive. Musk even said his investment group would be buying Twitter for more than it’s worth.

Less clear is what’s happening with the billions of dollars pledged to Musk by investors who would get ownership stakes in Twitter. Musk’s original slate of equity partners included an array of partners ranging from the billionaire’s tech world friends with like-minded ideas about Twitter’s future, such as Oracle co-founder Larry Ellison, to funds controlled by Middle Eastern royalty.

The more equity investors kick in for the deal, the less Musk has to pay on his own. Most of his wealth is tied up in shares of Tesla, the electric car company that he runs. Since April, he has sold more than $15 billion worth of Tesla stock, presumably to pay his share. More sales could be coming.