Elon Musk completes $44bn Twitter takeover – and immediately sacks top executives
Elon Musk has completed his $44bn (£38bn) takeover of Twitter after months of toing and froing over the deal.
His first move was to fire the social media company’s top leadership, which he accused of misleading him over the number of spam accounts on the platform.
Musk sacked Twitter’s chief executive Parag Agrawal, chief financial officer Ned Segal and legal affairs and policy chief Vijaya Gadde, according to reports.
It has also been claimed Agrawal and Segal were in Twitter’s San Francisco headquarters when the deal closed and were escorted out of the building.
Musk later tweeted “the bird is freed” in a nod to the deal being completed.
The Tesla and SpaceX founder was given a deadline of 28 October to close the deal to avoid going to trial, after the social media company sued him for trying to rip up his original offer made back in April.
Musk and Twitter were due in court on 17 October, but it was pushed back after the world’s richest man said he would go through with the purchase after all.
Earlier this week, Musk posted a bizarre video of himself entering Twitter’s San Francisco headquarters carrying a sink alongside the message: “Entering Twitter HQ – let that sink in”.
Musk, who has updated his Twitter bio to “Chief Twit”, said on Thursday he did not buy the social media platform to make more money but “to try to help humanity, whom I love.”
He says he wants to “defeat” spam bots on Twitter, make the algorithms that determine how content is presented to its users publicly available, and prevent the platform from becoming an echo chamber for hate and division, even as he limits censorship.
He has not offered details on how he will achieve these wishes and who will run the company – and has so far been vague about his plans.
According to reports, Musk told staff during his visit it was not true he was planning on cutting up to 75% of Twitter staff after acquiring the company.
It was previously reported that Musk told investors he was hoping to cut around three-quarters of the firm’s 7,500 employees.
In other plans, the outspoken billionaire has also repeatedly referred to a “super app”, which he has tentatively dubbed “X”.
The concept has drawn comparisons with China’s WeChat, which combines familiar features like messaging, a marketplace, and public Twitter-style posts into one place.
Read more:
Super app or Wild West? The future of Twitter under Elon Musk
Musk has told investors he plans to sell users premium subscriptions to reduce reliance on ads, allow content creators to make money and enable payments, according to Reuters news agency.
Elsewhere, his plans to cut content moderation are feared to lead to a deluge of hateful, harmful and potentially illegal content on Twitter.
He has previously spoken of his belief in “absolute free speech” and hinted he would allow suspended and often controversial figures, such as former US president Donald Trump, to return to the platform.
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‘Let that sink in’
Experts have warned that the world’s richest man’s loose stance on moderation could be a route for the service’s “very worst” trolls to thrive, turning Twitter into a “Wild West” where anything goes.
The 28 October deadline was to give Musk time to finance the deal. Had it not been met, a judge in Delaware – the US state where Twitter is incorporated – would have arranged a trial for November.
It ends months of bad blood between the two parties regarding the takeover, with Musk complaining about fake accounts on the platform and claims by a whistleblower that Twitter misled regulators about security risks.
It also emerged earlier this month that Musk is being investigated by federal authorities over his conduct.
A trio of property giants has lodged a protest against a radical financial restructuring that will see Cineworld imposing steep rent cuts on its landlords.
Sky News has learnt that British Land, Landsec and Legal & General Investment Management all voted against the cinema operator’s restructuring plan this week.
Cineworld has confirmed plans to close six of its UK multiplexes, but documents circulated to creditors show almost 50 others are in categories requiring landlords to agree to revised rent deals in order to ensure their long-term viability.
Although they carry significant influence in the commercial property sector, the trio’s protest will have no impact on the outcome of the company’s proposals, since its owners are now also among its largest creditors, meaning they can effectively force the deal through.
According to documents sent to creditors during the summer, 33 sites – categorised as Class B – “require a reduction of rent to ERV [Estimated Rental Value] Rent in order to place the sites on a viable long-term footing”.
A further 38 of Cineworld’s cinemas would be unaffected, while another 16 Class C1 and C2 leases require reductions to either turnover rent or zero rent in order to render them financially viable.
The documents added that the company did not have sufficient funding to meet a quarterly rent bill on June 24 of £15.9m.
“The UK group did not have sufficient liquidity to make the June 2024 Rent Payment and required further funding from the US Group to meet this liquidity need.
“Absent this funding, the UK Group would have been insolvent on a cashflow basis.”
Cineworld is being advised by AlixPartners.
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Other cinema operators are now poised to step in to take over some of Cineworld’s sites.
The company trades from more than 100 locations in Britain, including at the Picturehouse chain, and employs thousands of people.
Cineworld grew under the leadership of the Greidinger family into a global giant of the industry, acquiring chains including Regal in the US in 2018 and the British company of the same name four years earlier.
Its multibillion-dollar debt mountain led it into crisis, though, and forced the company into Chapter 11 bankruptcy protection in 2022.
It delisted from the London Stock Exchange last August, having seen its share price collapse amid fears for its survival.
Cineworld also operates in central and Eastern Europe, Israel and the US.
A long-running measure of consumer confidence has slumped to levels last seen at the start of the year following warnings of “tough choices” ahead in the looming budget.
GfK’s Consumer Confidence Index fell seven points in September to minus 20, with significant drops in predictions for personal finances and the general economy over the coming year.
The report’s authors suggested it was “not encouraging news” for the new government, which has made growing the economy its top priority.
Money latest: Millions already buying mince pies ahead of Christmas
But within weeks of taking the post of chancellor, Rachel Reeves – followed by prime minister Sir Keir Starmer – moved to warn of a legacy £22bn “black hole” in the public finances and said it would result in a painful budget on 30 October.
Among measures already taken include cuts to winter fuel payments, leaving up to 10 million pensioners up to £300 worse off, and inflation-busting public sector pay settlements.
Tax rises and spending cuts are widely expected in next month’s statement to MPs though The Times reported on Friday that a decision by the Bank of England to slow a programme of loss-making bond sales would leave Ms Reeves £10bn better off than she had anticipated.
It added that she was still expected to push forward with her budget plans anyway as a signal of her commitment to fiscal discipline.
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Chancellor: ‘One budget not enough’
The latest snapshot on the public finances, released by the Office for National Statistics (ONS) on Friday showed net borrowing of £13.7bn during August.
Its chief economist, Grant Fitzner, said: “Borrowing was up by over £3bn last month on 2023’s figure, and was the third highest August borrowing on record.
“Central government tax receipts grew strongly, but this was outweighed by higher expenditure, largely driven by benefits uprating and higher spending on public services due to increased running costs and pay.”
Consumer spending accounts for around 60% of the UK economy.
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Data released separately on Friday showed a 1% rise in retail sales volumes during August in the wake of weakness, mostly blamed on poor weather, over the previous couple of months.
The ONS said that the increase was driven by supermarket sales, as demand for BBQ food and drinks rose due to the arrival of some sunshine over the key holiday month.
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UK economy flatlines again
It also credited discounting by clothing retailers.
The data chimes with the latest updates from big retailers, including Next and B&Q’s owner, which have spoken of weak demand for so-called big ticket items such as home furnishings and kitchens respectively.
GfK’s closely-watched survey showed expectations for the general economy over the next 12 months fell by 12 points to -27, while the forecast for personal finances was down nine points to -3.
Read more:
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Commenting on its key measures, including the headline figure, consumer insights director at GfK Neil Bellamy said: “These three measures are key forward-looking indicators so despite stable inflation and the prospect of further cuts in the base interest rate, this is not encouraging news for the UK’s new government.”
He added: “Strong consumer confidence matters because it underpins economic growth and is a significant driver of shoppers’ willingness to spend.
“Following the withdrawal of the winter fuel payments, and clear warnings of further difficult decisions to come on tax, spending and welfare, consumers are nervously awaiting the budget decisions on October 30.”
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