Twitter CEO expects Elon Musk acquisition to close and addresses spending cuts

Twitter CEO expects Elon Musk acquisition to close and addresses spending cuts

Twitter CEO Parag Agrawal said he still expects Elon Musk’s $44 billion acquisition to close in 2022, despite the Tesla boss’ recent tweet that the deal was temporarily on hold.

“While I expect the deal to go through, we need to be prepared for all scenarios and always do what’s right for Twitter,” Agrawal said in a Twitter thread on Friday. “I’m responsible for leading and running Twitter, and our job is to build a stronger Twitter every day.”

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The deal, which would take the social media giant private for $54.20 per share, is on hold pending details supporting calculations that spam and fake accounts account for less than 5% of Twitter users.

In which first quarter of 2022Twitter’s monetizable daily active user base grew 15.9% year over year to 229 million, including 39.6 million daily active users in the US and 189.4 million daily active users overseas.

Musk has previously promised to take action against spam bots to improve the user experience on Twitter. The self-proclaimed “free speech absolutist” has also expressed an interest in opening up Twitter’s algorithm to increase transparency, saying he would do so Lifting the ban on ex-President Donald Trump.

ticker security Last To change To change %
TWTR Twitter Inc. 40.70 -4.38 -9.72%

The transaction is also required to receive shareholder and regulatory approvals and other customary closing conditions to close.

Musk emphasized in a follow-up tweet on Friday that he’s “still committed” to completing the acquisition.

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Agrawal also addressed the company’s recent decision to cut non-labor spending.

“Our industry is in a very challenging macro environment right now,” he said. “I will not use the deal as an excuse to avoid making important decisions for the health of the company, nor will any Twitter executive.”

In addition to spending cuts, Twitter has announced plans to pause most hiring and replacements, except for mission-critical roles.

Kayvon Beykpour, general manager of Twitter’s consumer product division, and Bruce Falk, revenue product lead, have both been fired. Jay Sullivan, Twitter’s vice president of consumer products, will serve as general manager of BlueBird and interim general manager of Goldbird.

Parag Agrawal Twitter

Parag Agrawal, CEO of Twitter, with a background of Twitter branding shown prior to the 2020 Consumer Electronics Show (CES) at the Las Vegas Convention Center in Las Vegas January 5, 2020. (Robyn Beckl/AFP via Getty Images | twitter/Getty Images)

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Agrawal says he will continue to embrace “the deep complexities” of Twitter and that users and investors “should expect more changes for the better.” He added that he will “try to give users more transparency about the company’s work.”

“You won’t see any tweets from me about ‘topic of the day’ or the loudest soundbite, but rather the ongoing, ongoing and challenging work our teams are doing to improve public conversation on Twitter,” he concluded.

Twitter stock ended Friday’s trading session down more than 9%, closing at $40.69 a share. The stock is down nearly 5% year-to-date and about 21% over the past year.

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