A source familiar with the matter told Archyde.com on Thursday that Elon Musk is expected to become the interim CEO of Twitter, after completing the $44 billion acquisition of the social media company, as the billionaire is close to securing the financing needed for the deal.
Musk, the world’s richest man, is also the CEO of Tesla, and heads two other companies, The Boring Company and SpaceX.
Tesla shares fell 8% in trading Thursday, as investors worried that Musk’s involvement in managing Twitter could distract him from managing the world’s most valuable electric car maker.
On the other hand, Twitter shares extended their gains and rose about 4% to $50.89, closer to the deal price of $54.20, as investors bet that the new funding made the deal more likely.
Parag Agrawal, who was appointed CEO of Twitter in November, is expected to remain in his role until the sale of the company to Musk is completed.
And CNBC reported, for the first time Thursday, that Musk plans to become the CEO of Twitter on a temporary basis.
Earlier today, Musk listed a group of high-profile investors willing to provide $7.14 billion in funding for the Twitter deal, including Oracle co-founder Larry Ellison and Sequoia Capital.
Also, the Saudi investor Prince Alwaleed bin Talalwho said last month that the deal price was not enough for him to sell his shares, instead agreed to transfer his $1.89 billion stake to the deal.
Musk increased his financing commitment to $27.25 billion, while reducing the margin loan from Morgan Stanley to $6.25 billion. It has already secured commitments of $13 billion in loans from banks.
Other investors include crypto firm Binance, New York real estate mogul Steven Witkoff, and DFJ Growth IV Partners, which has investments in The Boring Company, SpaceX, SolarCity and Tesla.
Musk will continue to hold talks with existing Twitter shareholders, including former company chief Jack Dorsey, to contribute to the proposed acquisition, according to the filing.
Larry Ellison, a Tesla board member and close friend of Musk, has allocated $1 billion in funding.
Musk will have to pay Twitter a $1 billion termination fee if he withdraws, and the social media company can also sue him to complete the deal.