Once Elon Musk completes his $44 billion acquisition of Twitter, the Tesla CEO is expected to serve as the temporary CEO of the social media company. This is according to CNBC's David Faber.
It is unknown yet as to what will happen to Twitter's C-suite once the deal is complete. Musk has not publicly issued a statement yet.
Meanwhile, Parag Agrawal, the current Twitter CEO who's been in the role for only five months, has remained mummed about the possibilities of him staying in the job.
According to The Verge, big tech observers speculate that with Musk's commitments to Tesla and SpaceX, where he's also CEO, he would have to hand off the top role at Twitter eventually.
Musk Already Secured $7.14 billion in Equity Commitments To Buy Twitter
A report from CNBC says that a SEC filing on Thursday revealed Musk secured approximately $7.14 billion in equity commitments from friends and other investors to buy Twitter.
According to Faber, Musk handpicked the investors. Equity commitments range from $1 billion from Oracle co-founder Larry Ellison to $5 million from Honeycomb Asset Management, which also invested in SpaceX, CNBC reported.
Twitter co-founder Jack Dorsey may back it according to Faber. Musk is said to be talking to him about the possibility of contributing shares immediately or before the closing of the merger, CNBC said.
There are no words yet as to whether Musk's takeover of the company would lead to a leadership shake-up. Reuters reported last month that Musk had lined up a new CEO for Twitter, citing a source familiar with the matter.
During a companywide town hall meeting last month, Agrawal told employees that the future of Twitter is uncertain under Musk, according to a separate CNBC report, citing Reuters as the source.
When asked whether the company will allow former U.S. President Donald Trump to return to the platform when Musk takes over, Agrawal reportedly said "Once the deal closes, we don't know which direction the platform will go."
"I believe when we have an opportunity to speak with Elon, it's a question we should address with him," Agrawal added.
Trump was permanently suspended from Twitter last year.
Musk' Acquisition of Twitter Comes at a Key Time for the Social Media Company
According to CNBC, Agrawal has said he would focus on growing Twitter's daily active user base and bringing new products to customers.
According to Twitter's latest earnings report, it hit 229 million monetizable daily active users, a 15.9% increase from the same period last year.
According to sources familiar with the situation who spoke with Faber, Musk has recently led presentations in front of investors, where he gave financial projections based on his analysis of Twitter.
Musk told investors that he felt Twitter's earnings was too low prior to the interest, taxes, depreciation and amortization margin, CNBC reported.
According to CNBC, Musk also said that company has "too many engineers not doing enough," Faber said, citing sources familiar. Musk also pledged to make the company a "magnet for talent," Faber added.
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