- In conversations with bankers, Elon Musk pitched ideas to lift Twitter’s bottom line, reports say.
- But he didn’t share details, and banks financed his Twitter buyout deal because he had other assets.
- Musk’s private pitch to bankers contradicts his position that he doesn’t care about Twitter’s profitability.
In conversations with bankers before he took Twitter private, Elon Musk suggested cutting workers, inviting influencers to create content, and introducing subscription services to improve Twitter’s bottom line, according to multiple news reports on Friday.
Musk also suggested monetizing tweets and cutting executive and board pay, per reports from Bloomberg, the Washington Post, and Reuters, all quoting unnamed sources who knew about his fundraising efforts.
Musk approached the bankers after announcing his buyout offer on April 14 and before Twitter’s board accepted his $44 billion proposal on April 26, Reuters reported.
Even though Musk floated these ideas to bankers to improve Twitter’s bottom line, he did not include them in the formal plans that were presented to Twitter’s board, Bloomberg and the Post reported. Instead, he said he would make sure 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 he takes up loans for the deal, the Post reported.
Musk’s behind-the-scenes conversations about the bottom line contradict his public statements about the Twitter purchase. Twitter is “not a way to make money,” Musk said at an April 14 live event, adding, “I don’t care about the economics at all.”
Musk has avoided sharing concrete plans for the social-media platform. All he’s said publicly is that he plans to add an “edit” function, remove spam bots, open Twitter’s algorithm up to changes, and loosen content moderation on the site.
Musk’s suggestion to lay off employees is likely to add to the disquiet that Twitter employees have been feeling since news of Musk’s offer became public. Twitter CEO Parag Agrawal said this week no layoffs are planned, but some employees are already looking for a way out, Insider’s Kali Hays reported.