Tesla Inc TSLA CEO Elon Musk has told potential investors he plans to return Twitter Inc TWTR to public ownership in as little as three years after completing the takeover, The Wall Street Journal reported on Tuesday, citing people familiar with the matter.
What Happened: The billionaire entrepreneur has agreed to buy Twitter for $44 billion and take it private, a platform where he has promised to return free speech and debate.
The deal is expected to close later this year following the approval of Twitter shareholders and regulators.
See Also: How To Buy Twitter (TWTR) Shares
The world’s richest man has been in talks with private equity firms and banks to fund the deal. Musk last week revealed through regulatory filings that he recently sold about $8.5 billion worth of shares in Tesla, is likely to raise funds for the deal, and may join hands with one or more equity partners.
An email sent to Tesla and Twitter did not elicit any response at press time.
Why It Matters: Musk has reportedly told bankers he plans to cut jobs and costs at Twitter to boost its bottom line amid plans to take it private. He also discussed ideas to monetize the platform and boost cash flow, including potential subscription services to drive recurring revenue.
Musk had previously not made any presentations that included plans for job cuts and tweet monetization to Twitter’s board, which evaluated the deal primarily on its price and future financial performance.
Twitter is likely going to undergo some key changes under Musk’s leadership.
Price Action: Twitter closed 0.55% lower at $48.87 on Tuesday.
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