Twitter CEO Fires Two Top Execs Amid Hiring Freeze; SEC Said To Be Probing Elon Musk Share Purchases

Twitter CEO Parag Agarwal The company has removed two top executives before the acquisition and announced a hiring freeze. Elon Muskwhose share purchases are reportedly being investigated by the SEC.

Consumer Product Chief Kayvan Becpour tweeted today that “after Parag told me he wants to take the team in a different direction.”

“That’s not how and when I envisioned leaving Twitter, and it was not my decision.”

Bruce Falk, general manager of revenue and head of product for its business side, is also gone.

A Twitter spokesperson said that effective this week, Twitter is excluding business critical roles, and pulling back on nonessential labor costs, “to ensure we are responsible and efficient.” Hiring freezes before a possible change of control are not uncommon.

Jay Sullivan is now the new GM of Bluebird, the consumer team, and Goldbird, interim general manager of the revenue team.

Agarwal, a software engineer and former chief technology officer of Twitter, took over as CEO of Jack Dorsey last November.

Twitter’s board of directors last month accepted Musk’s $54.20 per share cash bid for the company, about $44 billion, after he teamed up with some big investors to raise cash. He had earlier acquired 9.2% of the company.

According to a report from the WSJ, the SEC is investigating the timing of the disclosure of Musk’s Twitter stock purchase as he built up his stake.

Investors must file publicly with the SEC when they purchase more than 5% of the company’s shares. The rule is clear and serves as an early warning to the shareholders/companies that someone has a significant stake and can challenge the management. Musk filed his form on April 4, less than 10 days after his stake passed the trigger point. He also gained the potential for significant savings on stock purchases in that period because news of his interest would have boosted the share price. Shareholders are suing Musk Late disclosure.

A separate lawsuit by the Orlando Police Pension Fund in Delaware Chancery Court says that Delaware law forbids an accelerated merger in this case because Musk used a settlement with his financial advisor Morgan Stanley and other large Twitter shareholders such as associate and Twitter founder Dorsey. has supported. Buyout – making him an effective owner of more than 15% of the company.

Twitter shares are down 4% at $44. The broader market is also down, but it’s still ten dollars below Musk’s offering price, indicating doubts that the deal will go through.