It was in April that tech billionaire Elon Musk announced his intention to purchase Twitter for around $44 billion, and since that time the proposal has been on-again, off-again, and subject to a civil lawsuit and rumors of federal probes.
Now, finally, it appears that the deal could be finalized by the end of the week on Friday, the Washington Examiner reported.
Once Musk’s purchase of Twitter is completed, he could conceivably begin to implement his plans to dramatically reform the social media platform, a significant part of which will likely include layoffs for a sizeable portion of the platform’s current workforce.
Deal to be finalized by Friday
Bloomberg News reported Tuesday that Musk had revealed his commitment to finalize his deal to purchase Twitter by Friday in a conference call with the bankers who are underwriting a portion of the purchase price.
The collection of banks will provide around $13 billion to Musk and have made arrangements for him to obtain additional credit, provided Musk helps those banks to offload the new debt through bonds and loans to other investors.
According to anonymous sources, there are only a few formalities left to be finished before the complex deal will be complete and finalized.
Interestingly enough, the news of the nearly complete deal sent Twitter’s stock price surging to a high of $53.18 per share on Monday, just shy of Musk’s initial purchase price offering of $54.20 per share.
Big cuts to workforce coming soon
The Washington Post reported last week that if and when the deal is finalized, Musk will immediately take over as Twitter’s new owner, at which point he can begin to implement his plans to reform the social media platform into a more profitable venture that is more committed to protecting free speech.
A big part of those plans involve massive cuts to Twitter’s “bloated” workforce, potentially as much as 75 percent of the platform’s roughly 7,500 employees.
However, before those soon-to-be-jobless workers get too mad at Musk, the Post noted that internal Twitter documents released during the legal dispute with Musk over his takeover bid revealed that Twitter was already planning to downsize its staff by as much as 25 percent if the deal with Musk ultimately fell through.
Musk hopes to turn Twitter into success story in three years
The Post further noted that Musk has revealed that his slashing of the workforce and other reforms are intended to rapidly transform the fiscally struggling and volatile platform into a profitable company with doubled revenue and a tripled user base within three years.
If the profitability and success of other Musk ventures like Tesla and SpaceX are any indication, the planned transformation of Twitter will result in another positive acquisition for the innovative and entrepreneurial billionaire.