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Elon Reeve Musk Completes $44 Billion Takeover of Twitter

Elon Reeve Musk has finalised his $44 billion deal to take Twitter private, putting an end to one of the most publicised and dramatic buyout sagas in recent memory.

Musk is the richest person in the world, according to both the Bloomberg Billionaires Index and Forbes’ real-time billionaires list.

Even as early as 2017, Musk indicated interest in acquiring Twitter. Musk started buying Twitter shares in January 2022, and by March had amassed a 5% position in the firm. By April, he had a 9% stake, making him the company’s largest shareholder.

In contravention of American securities rules, he failed to submit the required SEC paperwork within 10 days of his ownership crossing 5%. On April 4, when he did make his investment publicly known in an SEC 13G filing, Twitter stock saw its biggest intraday gain since its 2013 initial public offering.

Following Musk’s remarks from March, in which he questioned Twitter’s commitment to free expression and floated the idea of starting a competing social media platform, it was revealed that Musk had acquired a sizeable investment in the company.

In an effort to create a “super app” that combines messaging, payments, and commerce, Musk has pledged to reduce Twitter’s workforce and operating expenses while fostering product innovation.

Musk had first agreed to purchase Twitter for $54.20 per share in April. A few months later, he filed a lawsuit against the San Francisco-based business to cancel the agreement, claiming that the platform had misled investors and regulators about false accounts and cyber security. In an effort to pressure the billionaire to complete the transaction, the social media business retaliated and countersued, setting up a contentious court dispute and discovery process.

Musk has promised to contribute a total of $33 billion in equity.

Twilio Dismisses 11% of Its Workforce

As the customer interaction platform strives to control expenses during the general economic slump, Twilio today revealed that it will lay off between 800 and 900 employees, or 11% of its workforce. CEO Jeff Lawson described the layoffs in a statement to the workforce, attributing in part to them Twilio’s explosive expansion over the past several years.

Lawson asserts that the cuts will primarily affect R&D, Twilio’s general and administrative divisions. The impacted employees, who were informed this morning, will get at least 12 weeks’ pay in addition to one week for each year of employment with Twilio and the value of Twilio’s upcoming shares vest.

According to Lawson, Twilio’s talent acquisition team would compile a list that terminated workers can choose to join and share with other businesses that could be hiring as well as “investors who know many such businesses.”

According to paperwork submitted to the U.S. Securities and Exchange Commission, Twilio predicts that the staff reduction will cost between $70 million and $90 million, with the majority of expenses occurring in the third and fourth fiscal quarters of the business in 2022.

Twilio, a publicly traded company situated in San Francisco, has been aiming for profitability by 2023, according to CNBC. As demand for its cloud services increased during the epidemic, the company’s headcount nearly doubled. Twilio purchased Zipwhip, a toll-free messaging service provider, for $850 million in 2021, and the data security platform Ionic Security.

But as people began to work in person again, sales plummeted.

Twilio’s Q2 2022 sales growth was 41%, the lowest since the December quarter in 2017, as the company faced a cyberattack that compromised the data of more than 100 customers. In its most recent fiscal quarter, Twilio – while exceeding Wall Street’s expectations – reported a loss of $322.8 million on $943.4 million in revenue.

Shares were up about 1% on news of the layoffs; Twilio’s stock has fallen about 73% this year.

Women in Healthcare Leadership Collaborative Powers Forward

The Women in Healthcare Leadership Collaborative, an exclusive leadership initiative for women in-house attorneys, compliance officers, business leaders and other professionals in the healthcare industry who have the talent and drive to advance their careers.

Sheppard Mullin is a full service law firm with approximately 1000 attorneys working in 15 offices worldwide.

The Women in Healthcare Leadership Collaborative will host its next program in New York on January 23, 2020 and it will be streamed live in the firm’s San Francisco office.

16 Sheppard Mullin New York attorneys named as “New York Super Lawyers” and an additional 17 Sheppard Mullin New York attorneys named “Rising Stars”.

The San Francisco office has grown to more than 100 attorneys since its founding in 1981, now the third largest of Sheppard Mullin’s 15 global offices.

Our lawyers are thought leaders, with 19 ranked by The Legal 500 United States, 20 in Best Lawyers in America and 15 as Northern California Super Lawyers.

The law firm was recently recognised by Law360 as a California Powerhouse, with several San Francisco victories and deals contributing to this honour.

It will feature a lively roundtable discussion with Sheppard Mullin healthcare attorneys Christine Clements, Bevin Newman, Allison Fulton and Kathleen Stratton on “A View from the Capitol: 2020 Healthcare Policy, Legal and Regulatory Predictions.”