A new report from Reuters claims Elon Musk has plans to hire a new CEO for Twitter. Same report revealed the Tesla CEO has told the banks that agreed to help finance his $44 billion acquisition offer about his plans to monetise tweets.
Reuters’ report maintained that Musk has determined who would be the next CEO of Twitter, however it didn’t mention the name of the person. Interestingly, Twitter’s current CEO, Parag Agrawal, who took over after Jack Dorsey’s November resignation, is anticipated to remain in the job until the transaction is completed.
Reuter also revealed Musk informed Twitter’s chairman Bret Taylor that he lacks trust in the company’s management, a concern he has expressed in SEC filings. According to the company’s most recent proxy filing, Agrawal is expected to earn a sizable compensation package if the deal is completed and Musk hires new management, as he would receive $38.7 million under a contract clause.
In addition, Reuter says Musk has informed banks that he intends to expand the ways in which the company generates revenue from tweets. He stated that he intends to develop a method for monetising tweets that become viral or include critical information. He also proposed charging a fee for third-party websites that quote or embed verified accounts’ tweets.
A Washington Post added that Musk discussed paying influencers to create content on the network, a business strategy that has proven effective for TikTok. Musk is also thought to be intrigued in the notion of the company offering subscription services.
Musk suggested significant changes to Twitter Blue earlier this month in deleted tweets. Twitter Blue is the platform’s subscription service, which is currently priced at $2.99 per month. Musk proposed lowering the price, adding a dogecoin payment option, and banning ads. In addition, the Tesla CEO stated in another now-deleted tweet that he wishes to wean Twitter off its dependence on advertising for the majority of its revenue.
Musk had reportedly hinted to banks that he could lower the company’s CEO and board salaries in order to cut costs. Additionally, Reuters adds that Musk stated in his pitch to banks that Twitter’s gross margin is far lower than that of other social media platforms such as Facebook and Pinterest, and that there are methods to manage the company more cost effectively.
