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

FP StaffOct 28, 2022 13:42:43 IST

After months of speculation of will he-wont he, Elon Musk last but not least closed the deal with Twitter and acquired the microblogging web page. His to start with purchase of enterprise was to thoroughly clean residence – his to start with act as the owner of Twitter, was to sack some of the prime executives of the system. This provided CEO Parag Agrawal, CFO Ned Segal and Normal Counsel Vijaya Gadde.

In all of this drama, it appears to be Parag has emerged as the real hero, at least for Twitter and the people today doing work there. It would be intelligent to recall that experienced it not been for Agrawal and his group, Elon Musk would have walked away from the offer, getting tanked Twitter’s inventory valuation.

Agrawal himself is going for walks absent with a severance package deal that may be well over $42 million, just like other best executives who ended up fired. Reaslitcaly, there is no rationale to come to feel poor for Agrawal and other prime executives who were being sacked.

When Jack Dorsey, Twitter’s previous CEO gave up his situation and had Parag consider about his posture, Musk was not accurately dissatisfied with Parag. Even so, he did have problems with Parag even back again then.

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— Elon Musk (@elonmusk) Could 16, 2022

Musk discovered the Twitter administration incompetent and his leaked chats had been testimony to the reality that he disliked Agarwal and preferred to get rid of him as shortly as he acquired him.

Originally, Parag and Elon ended up on civil terms. Having said that, at any time given that Musk publicly attempted to consider over Twitter in a hostile fashion, points adjusted in between the two. Musk has often berated Agrawal and even mocked him for holidaying in Hawaii. Musk thought that Agrawal was not the type of male who could run Twitter, and had conveyed so to Jack Dorsey.

Just one also has to look at just just how the takeover bid was initiated. 

Then, there’s also the truth that there have been several events where Musk tied to troll Parag brutally. Parag was compelled to take a stand towards Musk a amount of times, and it seems, that in most circumstances, he emerged victorious.

Agrawal absolutely will have to have regarded that if indeed Musk would acquire Twitter, he would be the initial just one to be demonstrated the doorway. And but, this did not cease Parag to make Musk go as a result of the acquisition process that he had to begin with started.

Make no blunder about this, but experienced it not been for the courtroom circumstance and subsequent discovery that was looming in excess of Elon, he wouldn’t have acquired the business. Not just that, Elon actually tried to back out of the deal a second time as effectively, after Twitter and its authorized crew submitted a case from Elon. 

One particular of Parag’s most sizeable moves in this complete drama was to get Twitter’s case listed in front of a courtroom which has a background of heading tricky on individuals, if they deal in undesirable religion.

Moreover forcing Musk to go through with the merger, Parag also ensured that he acquired Twitter at the value that Musk experienced at first provided, even while, the current worth of Twitter is almost nothing close to the sum. Musk always understood that spending $44 billion for Twitter was a mistake. Numerous business insiders think that Musk’s selection to feign and pull out of the offer was an elaborate ruse to get the board users at Twitter enable Musk make a a great deal smaller offer you.

In 2021, Agrawal’s overall compensation 2021 was $30.4 million, most of which was paid out to him in inventory awards. When Parag was designed CEO, he was replacing Jack Dorsey, the founder & CEO of Twitter at that level. Parag’s contract stipulated that Agrawal is entitled to get $42 million from Twitter if he were being terminated within 12 months of a transform in regulate as a severance package, some ingredient in the sort of a bonus, and all of his wages that ended up accrued to him.