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How Much Will Jack Make From the Twitter Sale?
If Elon Musk purchases Twitter, then the founder Jack Dorsey will make $978 million from the sale of his shares. Musk has already committed $7.14 billion in financing to the deal. He would also hand over another $25.4 million to Twitter’s CEO, Parag Agrawal. Nonetheless, Dorsey’s shareholders are asking him to bet on Musk. The stake in the new Twitter is significant – but does it make Dorsey a good bet?
Jack Dorsey is expected to take home $978 million from his sale of Twitter shares
Taking a look at Musk’s offer, it appears the multi-billionaire will give Twitter’s CFO up to $39 million in cash. If that is true, that makes Musk the richest person on earth. However, it’s worth noting that Dorsey stands to benefit more from Musk’s deal. This may interest you : How to See Who Unfollowed You on Twitter. Besides the $978 million, Dorsey is making a point about Twitter’s business model. There are two possible future business models for Twitter, a $3 monthly subscription service and ads on the platform.
After all of the hype, Twitter is now in the hands of new management. Last month, Dorsey handed over the reins to Parag Agrawal, who has cut back on his Silicon Valley profile. Agrawal has stated that he is interested in building a “decentralized” version of Twitter that will transfer power back into users’ hands, challenging Facebook and its owner Meta. In order to make this happen, Twitter is funding an independent effort to build an open protocol, allowing developers to build on the platform.
Elon Musk’s group of investors will provide $7.14 billion in financing commitments for his pending $44-billion acquisition of Twitter
The pending transaction is expected to close within the next few months, and Musk has already floated the idea of expanding the company’s paid subscription model. On the same subject : How to Use Twitter Data for Sentiment Analysis. According to a pitch deck he used during a recent meeting, the billionaire has plans to lay off 1,000 employees at Twitter over the next year and hire 2,700 new ones by 2025.
The pending deal between Twitter and Tesla is currently on hold. On Monday, Musk’s legal team filed a letter to the Delaware Court of Chancery stating that he intended to walk away from the deal due to stock market changes. Twitter also claimed that Musk used complaints about bots to wiggle out of the deal. He also breached an agreement not to publicly insult Twitter executives. In addition, he violated a condition of the deal that required him to use his reasonable best efforts to get the financing commitments.
Elon Musk’s group of investors will provide funding commitments to his pending $44-billion Twitter takeover. This amount includes contributions from billionaire Larry Ellison, the sovereign wealth fund of Qatar, and Binance. Another billion dollars will be provided by Prince Alwaleed bin Talal of Saudi Arabia, the co-founder of Twitter.
Twitter’s CEO Parag Agrawal would receive $38.7 million
The current CEO of Twitter, Parag Agrawal, would get $42 million if the sale of the company triggers his clause. However, there’s no word yet on who will lead the company after the sale. Agrawal told Twitter employees that their stock options would convert to cash upon closing of the transaction. This may interest you : Can You Upload 1920×1080 to Twitter?. He also said that bonuses would continue to be paid out according to Twitter’s vesting schedule. And he said that employees would continue to receive the same benefits package for one year after the deal closes.
Other Twitter executives who could get cash payouts include Agrawal, who succeeded Dorsey as CEO late last year. His clause cites the fact that he would report to a publicly-traded company in the event of the sale. CFO Ned Segal would earn $25.5 million in the event of the sale. CFO Bret Taylor would earn $3 million. Other Twitter executives that would receive cash payouts are Omid Kordestani and CFO Parag Agrawal.
CFO Ned Segal would receive $25.4 million
If Musk completes his takeover, Twitter CFO Ned Segal would get a $25.4 million payout, according to a recent Forbes report. His total compensation for the year 2021 is $30 million. Among the other executives who would be eligible for a share of the sale proceeds are chief legal officer Vijayya Gadde, who would get $12.4 million, and chief customer officer Sarah Personette, who would receive $11.2 million.
The Twitter sale would also benefit its investors, as its stock surged 3% on news of the deal. The company’s quarterly earnings and revenue fell short of expectations. Twitter blamed a number of headwinds for the shortfall, including product problems and lower advertising volume. While it’s still a profitable company, it’s not in the best financial shape. It’s worth noting that Musk’s investment banker, Evercore Inc., has advised Musk on Twitter’s shaky financial condition.
