Elon Musk told banks they agreed to help financially with his acquisition of Twitter for $ 44 billion that it could suppress executive and board salaries at the social media company in an effort to reduce costs, and will develop new ways to monetize tweetssaid three people familiar with the matter.

Musk made the pitch to lenders as he tried to get a loan for purchase days after posting his offer on Twitter on April 14, assured the Reuters agency, based on own resources. His filing of promises to the bank on April 21 was key to Twitter’s board acceptance of his “last and best” offer.

Musk had to convince banks that Twitter was making enough money flow to pay off the debt he was looking for. Ultimately, he took out $ 13 billion in secured loans against Twitter and a $ 12.5 billion margin loan linked to his Tesla Inc (TSLA.O) shares. agreed to pay the remaining consideration with your own cash.

Musk’s speech to the banks builds on his outlook rather than firm promises, sources said, andExact cost reductions you will be looking for once you own Twitter will remain unclear. The plan he described to the banks was scattered in detailsadded resources.

Musk tweeted about removal of directors’ salary of Twitter’s board of directors, which he said could result in cost savings of approximately $ 3 million. Twitter’s share-based compensation for the 12 months ending December 31, 2021 is 630 million, an increase of 33% compared to 2020as shown by company documents.

In his presentation to banks, Musk also pointed to Twitter’s gross margin, which is lower than peers like Meta Platforms Inc (FB.O), Facebook and Pinterest (PINS.N), arguing that leaves it’s too much space. for run the business more profitably.

According to Reuters, the sources requested anonymity because the matter is confidential. A representative for Musk declined to comment.

Bloomberg News reported Thursday that Musk specifically mentioned the job reduction as part of your presentation to the banks. One of the sources said Musk will not make decisions about job cuts until he acquires ownership of the company later this year. He continued taking without access to sensitive details about the company’s financial performance and number of employees.

Musk told banks he also plans to develop features to increase business revenue, including new ways to make money. tweets that contain important information or go viral, said the sources.

Along with the ideas he presented will charge a fee when a third-party website wants to quote or embed a tweet from verified individuals or organizations.

In a tweet earlier this month that he later deleted, Musk suggested some changes to Twitter Blue premium subscription service from the social media giant, including its price drop, advertising ban, and the option to pay with dogecoin cryptocurrency. The Blue premium Twitter service now it’s $ 2.99 a month.

In another tweet he deleted, Musk said he wanted to reduce Twitter’s reliance on advertising for a large portion of their income.

Musk, whose net worth is pegged by Forbes to $ 246 billionindicated that it would support banks in marketing syndicated debt to investors, and it could reveal more details of its business plan for Twitter at that time, sources said.

Musk also lined up a new CEO for Twitter, one of the sources added, who declined to disclose the identity of that person. He told the president of Twitter, Brett Taylor, earlier this month he did not trust the management of the San Francisco -based company. Expect that Parag Agrawalwho was named Twitter’s chief executive in November, will remain in his post until the company’s sale to Musk is completed.

Musk was flooded with offers from potential equity partners to join him in the deal on Twitter, and decide in the coming weeks whether to contact someonesaid one of the sources. Musk is unlikely to partner with a private equity firm because the deal is not structured like a traditional leveraged buyout, the source added.

Musk announced this week that he is selling $ 8.5 billion worth of Tesla stock, a move likely intended helped fund his deal for Twitter.