- In talks with bankers, Elon Musk pitched ideas to boost Twitter’s profits, reports say.
- But he didn’t share details, and banks funded his Twitter buyout deal because he had other assets.
- Musk’s personal pitch to bankers contradicts his position that he doesn’t care about Twitter’s profitability.
In talks with bankers before taking Twitter private, Elon Musk suggested firing employees, inviting influencers to create content and introducing subscription services to improve Twitter’s profits, according to multiple news reports on Friday.
Musk also suggested monetizing tweets and cutting executive and executive pay, according to reports from Bloomberg, the Washington Post and Reuters, all of which cited unnamed sources who were aware of his fundraising efforts.
Musk approached the bankers after he announced his takeover offer on April 14 and before the Twitter board accepted his $44 billion proposal on April 26, Reuters reported.
Although Musk presented these ideas to bankers to improve Twitter’s profits, he did not include them in the formal plans presented to Twitter’s board, Bloomberg and the Post reported. Instead, he said he would ensure the deal is profitable, sources told Bloomberg.
Despite the lack of details, lenders still bought into Musk’s vision because the billionaire already owns several valuable assets that could be useful when taking out loans for the deal, the Post reported.
Musk’s behind-the-scenes talks about the bottom line contradict his public statements about the Twitter purchase. Twitter is “no way to make money,” Musk said at an April 14 live event, adding, “I don’t care about the economy at all.”
Musk has avoided sharing concrete plans for the social media platform. All he has said publicly is that he plans to add an “edit” feature, remove spam bots, open Twitter’s algorithm to changes, and ease content moderation on the site.
Musk’s suggestion to lay off employees is likely to add to the unrest Twitter workers have been feeling since news of Musk’s offer went public. Twitter CEO Parag Agrawal this week said no layoffs are planned, but some employees are already looking for a way out, Insider’s Kali Hays reported.