'Twitter Acquisition D-2' Musk's Reason for Bringing a Washbasin to San Fran Headquarters (Summary)

Elon Musk, CEO of Tesla
Photo by AP Yonhap News

[Asia Economy Reporter Jeong Hyunjin] Elon Musk, CEO of Tesla, released a video on the 26th (local time), two days before the deadline for completing the acquisition of the social networking service (SNS) Twitter, showing him entering Twitter's headquarters building in San Francisco, USA.

In the 9-second short video Musk posted on Twitter that day, he is seen carrying a washbasin and walking into the Twitter headquarters building with a bright smile. The scene appears as if he is moving in, accompanied by the caption "Entering Twitter HQ, washbasin inside." At the same time, Musk also listed himself as "Chief Twit" in his Twitter profile. While the term can be interpreted as "foolish boss," it is understood as a pun implying that he will become the "head of Twitter."

Two hours after posting the washbasin video, Musk wrote, "Had meetings with many great people at Twitter today."

The video was released ahead of the scheduled completion of the acquisition between Musk and Twitter on the 28th. Earlier, Musk had declared the termination of the Twitter acquisition deal in July but reversed his decision on the 5th of this month, agreeing to acquire Twitter as originally contracted. Consequently, the Delaware Court of Chancery, which handles corporate disputes, temporarily suspended the lawsuit between Musk and Twitter and ordered the acquisition to be completed by the 28th.

The market expects that all paperwork will be finalized and Musk will own Twitter by 5 p.m. on the 28th. It is reported that Musk recently promised the banks providing loans that he would complete the acquisition as scheduled on the 28th. Anu Aiyengar, Global Co-Head of Mergers & Acquisitions at JP Morgan, which is advising Twitter, stated at a conference in New York that Musk plans to close the deal at the previously agreed price and terms. Musk agreed to acquire Twitter for a total of $44 billion at $54.20 per share (approximately 77,000 KRW).

[Image source=Reuters Yonhap News]

According to The Wall Street Journal (WSJ), banks lending $13 billion to Musk for the $44 billion Twitter acquisition began the cash transfer process that day.

Musk is expected to meet Twitter employees at the headquarters on the day the acquisition is finalized, the 28th. Leslie Berland, Twitter's Chief Marketing Officer (CMO), announced in a memo to employees that Musk plans to give a speech. She said, "Elon plans to meet people in the office this week, walk the halls, and keep you focused on the important work you do. If you are at headquarters and meet him, say hello. This will be the start of many meetings and conversations with Elon for everyone."

Once the Twitter acquisition is complete, Musk is expected to undertake large-scale layoffs. The Washington Post (WP) reported on the 20th, citing documents and interviews it obtained, that Musk told investors he plans to cut about 75% of Twitter's 7,500 employees, reducing the workforce to around 2,000. Following this, an analysis showed that 530 employees have left Twitter in the past three months ahead of the acquisition.

Meanwhile, Twitter's stock closed at $53.35, up 1.08% from the previous trading day. Twitter's stock price, which had fallen to the $32 range in July when Musk declared the termination of the acquisition deal, fluctuated afterward but recovered to the $50 range after Musk withdrew the termination declaration in October. Bloomberg reported that Twitter's stock price gap with Musk's acquisition price has narrowed to less than $1.

This content was produced with the assistance of AI translation services.