Elon Musk becomes CEO of Twitter, co-founder Jack Dorsey transfers $1 billion stake. By Investing.com

© Reuters.

By Senad Karaahmetovic

In a document released yesterday, Elon Musk, CEO of Tesla (NASDAQ:) and SpaceX, said he will be Twitter’s new chief executive. (NYSE:) after completing the buyout late last week. Mr Musk also runs brain chip start-up Neuralink and tunnel-building company Boring.

Mr Musk previously fired the entire Twitter board and ran as the sole director.

“The following individuals who were directors of Twitter prior to the merger becoming effective are no longer directors of Twitter: Bret Taylor, Parag Agrawal, Omid Kordestani, David Rosenblatt, Martha Lane Fox, Patrick Pichette, Egon Durban, Fei -Fei Li and Mimi Alemayehou,” Musk said in his statement.

In a separate filing, Twitter co-founder Jack Dorsey said he transferred more than 18 million shares of Twitter into Elon Musk’s operation. Based on the buyback price of $54.20 per share, Dorsey’s stake would have been worth nearly $1 billion.

Separately, the Financial Times reported that Musk’s lenders are prepared to hold $12.7 billion in debt from Twitter through early 2023. The banks, led by Morgan Stanley (NYSE:), Bank of America (NYSE:) and Barclays (LON:), want to see what Musk’s plans are for Twitter before pitching the debt to investors. The report notes that banks have already admitted that they risk incurring huge losses on this debt.

The Washington Post reported yesterday that Musk plans to lay off 25% of Twitter staff, starting today, as part of the first round of layoffs.

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