Connect with us

Latest News

Elon Musk has informed banks that he will limit Twitters compensation and use tweets to generate revenue

Published

on

According to three individuals familiar with the situation, Elon Musk promised banks that agreed to help fund his $44 billion acquisition of Twitter Inc that he may cut executive and board compensation at the social media business to minimize expenses, and that he would discover new methods to monetize tweets.

According to the individuals, Musk made the pitch to bankers as he attempted to arrange funding for the buyout days after submitting his bid to Twitter on April 14. His financial pledges, which he submitted on April 21, were crucial in Twitter’s board accepting his “best and last” bid.

Musk would have to persuade banks that Twitter’s cash flow was sufficient to cover the loan he was seeking. In the end, he received $13 billion in loans guaranteed by Twitter, as well as a $12.5 billion margin loan secured by his Tesla equity. He promised to pay the remaining amount out of his pocket.

Asper to the sources, Musk’s pitch to the banks was more of a vision than a definite pledge, and the precise cost reduction he would seek once he buys Twitter is unknown. According to the sources, the proposal he detailed to banks lacked specificity.

Musk has tweeted about cutting the wages of Twitter’s board directors, which he claims will save the company $3 million. According to corporate documents, Twitter’s stock-based compensation for the 12 months ended December 31, 2021, was $630 million, up 33% from 2020.

Musk also used Twitter’s gross margin, which is substantially lower than peers like Meta Platform Inc’s Facebook and Pinterest, in his presentation to the banks, claiming that this gives plenty of room to run the firm more cost-effectively.

Because the topic is private, the sources requested anonymity. Musk’s spokesperson declined to comment.

According to Bloomberg News, Musk expressly highlighted job cutbacks in his pitch to the banks on Thursday. According to one of the insiders, Musk will not make any decisions about employment layoffs until he takes control of the firm later this year. He moved forward with the purchase despite not having access to private information about the company’s finances or headcount.

According to the individuals, Musk told the banks that he wants to build features to boost company income, including new methods to monetize tweets that contain significant information or go viral.

Elon Musk, according to sources familiar with him, will assist banks in selling syndicated loans to investors. According to reports, he may also reveal additional specifics about his Twitter business strategy later this year. The premium Blue service from Facebook now costs $2.99 ($3.99) per month. He has also hired a new CEO for Twitter, according to Reuters sources close to the company. Because of Musk’s unpredictability, several banks declined to participate in a $13 billion margin loan, according to the sources. By 2022, the loans would be worth seven times Twitter’s estimated revenues.

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest News

40,000 NMMC School Students Await Uniforms as Contractor Misses Deadline

Published

on

Navi Mumbai civic body extends delivery deadline to August 15 for Mafatlal Industries, imposing week-by-week financial penalties.

The Deadline

Over 40,000 primary and secondary students enrolled in Navi Mumbai Municipal Corporation (NMMC) civic schools remain without their new uniforms, following significant delays by the designated contractor.

The civic body had awarded a Rs 13.33 crore contract to M/s Mafatlal Industries Limited to supply regular, sports, and Scout/Guide uniforms to 50,550 students ranging from Balwadi to Class 10. Despite receiving the work order on May 8 with a strict delivery deadline of July 15, the contractor managed to supply complete sets to only around 8,000 students by the target date. As a result, thousands of children are currently forced to attend classes in old uniforms or home clothes.

Following show-cause notices issued on July 10 and July 21, the civic administration granted an official extension until August 15. However, the delay comes with financial consequences for the supplier. In accordance with contract terms, NMMC will deduct progressive penalties from the final payment ranging from 0.5% for the first week of delay up to 2.0% for subsequent weeks.

NMMC Deputy Education Commissioner Sanghratna Khillare confirmed that the decision to extend the deadline was taken after high-level discussions with civic authorities, emphasizing that penalty deductions will be strictly enforced as per municipal rules to ensure full delivery before mid-August.

Continue Reading

Latest News

Deep Potholes Turn Kharghar Stretch into Hazardous Accident Zone

Published

on

Frustrated residents call out PCMC inaction as hidden craters under waterlogged roads trigger collisions and severe commuter delay.

The Potholes

Growing public outrage has erupted across Kharghar as deep, crater-like potholes and poor drainage have converted key internal corridors into severe accident hazards. Monsoon rains have left several vital stretches particularly those serving Sectors 2 through 36 and connecting high-footfall destinations like Central Park, ISKCON Temple, and the Tata Memorial/ACTREC facility in a state of absolute disrepair.

Submerged under rainwater, the hidden potholes pose an invisible trap for two-wheeler riders and daily commuters. Frequent incidents of motorists skidding, losing balance, and crashing into deep depressions have been reported. The situation is further compounded by heavy commercial vehicles making sudden, erratic maneuvers to dodge the craters, causing minor rear-end collisions and massive traffic bottlenecks during peak commuting hours.

Local residents and civic activists have strongly criticized the Panvel City Municipal Corporation (PCMC) for its inaction. Frustrated tax-paying citizens point out that recurring temporary patch-ups dissolve within weeks of heavy downpours, reflecting a lack of quality control in municipal road maintenance contracts.

Demanding immediate accountability, community members have urged civic authorities to deploy emergency road repair teams, clear clogged storm-water drains, and execute comprehensive quality audits on recent infrastructure works before major casualties occur.

Continue Reading

Latest News

Pothole-Riddled Highways Threaten Commuters and Airport Route in Navi Mumbai

Published

on

Despite millions spent on annual maintenance, heavy rains expose crumbling infrastructure across major arteries like Sion-Panvel and Ulwe-Belapur roads.

The Potholes

A wave of public anger has erupted across Navi Mumbai as relentless monsoon rains have turned major highways into dangerous, pothole-riddled stretches. Key routes connecting Mumbai, Thane, Raigad, and the JNPA port are seeing severe traffic bottlenecks and frequent accidents.

The situation is particularly critical along the Ulwe-Belapur road, the primary arterial route for the Navi Mumbai International Airport. Deep craters and heavy waterlogging have made travel hazardous for both domestic and international commuters. The safety risks were highlighted recently when a heavy container truck overturned on the Ulwe-Belapur stretch, causing massive gridlock on both sides of the corridor.

Other vital thoroughfares, including the Sion-Panvel Highway and the Thane-Belapur road, are equally affected. Key flyovers at Kharghar and Turbhe, along with the main entry stretch from Airoli Toll Plaza, have developed large, hidden craters beneath accumulated rainwater. Daily commuters and two-wheeler riders face constant hazards as vehicles lose balance during sudden braking.

Frustrated residents have raised sharp questions over civic accountability, noting that temporary patch-ups wash away annually despite substantial maintenance budgets. Addressing the mounting criticism, National Highways Authority of India (NHAI) officials stated that repair work is currently underway on a war footing, promising long-term, modern road infrastructure upgrades to match the international airport’s requirements.

Continue Reading

Trending