How Parag Agrawal forced Elon Musk to buy Twitter and walked away with $42 million after getting fired- Technology News, Firstpost

FP Staff membersOct 28, 2022 13:42:43 IST

Just after months of speculation of will he-wont he, Elon Musk ultimately shut the offer with Twitter and obtained the microblogging web-site. His very first order of small business was to clean up dwelling – his initial act as the operator of Twitter, was to sack some of the major executives of the platform. This integrated CEO Parag Agrawal, CFO Ned Segal and Typical Counsel Vijaya Gadde.

In all of this drama, it would seem Parag has emerged as the actual hero, at minimum for Twitter and the men and women working there. It would be wise to try to remember that experienced it not been for Agrawal and his crew, Elon Musk would have walked absent from the offer, acquiring tanked Twitter’s inventory valuation.

Agrawal himself is strolling absent with a severance package deal that may well be very well more than $42 million, just like other top rated executives who have been fired. Reaslitcaly, there is no rationale to sense negative for Agrawal and other major executives who ended up sacked.

When Jack Dorsey, Twitter’s former CEO gave up his place and experienced Parag get around his situation, Musk wasn’t just dissatisfied with Parag. However, he did have difficulties with Parag even again then.

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— Elon Musk (@elonmusk) May perhaps 16, 2022

Musk found the Twitter administration incompetent and his leaked chats had been testimony to the reality that he disliked Agarwal and required to get rid of him as before long as he acquired him.

In the beginning, Parag and Elon were on civil conditions. Nonetheless, at any time given that Musk publicly tried to get above Twitter in a hostile method, factors adjusted among the two. Musk has frequently berated Agrawal and even mocked him for holidaying in Hawaii. Musk believed that Agrawal was not the form of male who could run Twitter, and experienced conveyed so to Jack Dorsey.

Just one also has to consider just particularly how the takeover bid was initiated. 

Then, there is also the simple fact that there have been several situations in which Musk tied to troll Parag brutally. Parag was forced to get a stand from Musk a selection of occasions, and it appears to be, that in most circumstances, he emerged victorious.

Agrawal certainly will have to have identified that if in fact Musk would receive Twitter, he would be the initially one to be demonstrated the door. And still, this did not prevent Parag to make Musk go via the acquisition process that he experienced originally began.

Make no miscalculation about this, but had it not been for the court docket case and subsequent discovery that was looming around Elon, he wouldn’t have acquired the corporation. Not just that, Elon really experimented with to again out of the offer a second time as very well, just after Twitter and its lawful staff filed a circumstance versus Elon. 

A single of Parag’s most major moves in this full drama was to get Twitter’s circumstance mentioned in entrance of a courtroom which has a background of heading tricky on persons, if they offer in bad faith.

Besides forcing Musk to go by means of with the merger, Parag also ensured that he bought Twitter at the value that Musk had at first provided, even though, the existing price of Twitter is very little close to the sum. Musk usually understood that paying out $44 billion for Twitter was a error. Numerous market insiders consider that Musk’s final decision to feign and pull out of the offer was an elaborate ruse to get the board customers at Twitter permit Musk make a considerably smaller provide.

In 2021, Agrawal’s overall payment 2021 was $30.4 million, most of which was compensated to him in stock awards. When Parag was built CEO, he was replacing Jack Dorsey, the founder & CEO of Twitter at that issue. Parag’s agreement stipulated that Agrawal is entitled to get $42 million from Twitter if he were terminated within just 12 months of a improve in management as a severance offer, some element in the type of a reward, and all of his wages that have been accrued to him.