Two top Twitter executives leaving amid possible Elon Musk buyout

Two top Twitter executives are leaving the company amid Elon Musk’s buyout offer — which is still in process — and restructuring that has begun to take place in preparation for Musk’s takeover.

Twitter General Manager Kayvon Beykpour and General Manager for Revenue Bruce Falck will exit the social media giant, apparently at the request of CEO Parang Agrawal, at least in Beykpour’s case.

Beypour tweeted from paternity leave that Agrawal had asked him to leave Twitter as it begins to move in a different direction.

Critical times

The company is also instituting spending cuts and a hiring freeze after poor performance in audience and revenue growth.

Parag Agrawal said in a memo obtained by the New York Times, “It’s critical to have the right leaders at the right time.”

Current interim general manager of the consumer product Jay Sullivan will replace Beykpour. Agrawal said in the memo that Sullivan’s “product vision, ability to inspire, move quickly and drive change is what Twitter needs now, and in the future.”

The company may be trying to make changes to show Musk and regulators that it is worth the $44 million Musk offered last month to buy the company.

On hold

Musk put the deal on hold temporarily as he determines whether the number of bot and scam accounts on the platform was accurately calculated at 5% of total users.

If that number is higher, it could also lower the price Musk needs to pay for the company. Musk said he is still committed to acquiring Twitter.

The announcement that the deal was on hold caused Twitter’s stock price to tumble nearly 10% in Friday afternoon trading, showing that if the deal falls through, Twitter could be in real trouble.

“Musk holds all the cards here,” the firm Hindenberg Research said. “If Elon Musk’s bid for Twitter disappeared tomorrow, Twitter’s equity would fall by 50% from current levels. Consequently, we see a significant risk that the deal gets repriced lower.”

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