Twitter and Mr Musk have, so far, been working together to close the deal, said a source familiar with the matter, although the dynamics could change rapidly.
How Elon Musk’s Twitter deal came to light
A blockbuster deal. Elon Musk, the world’s richest man, completed an impossible attempt to buy Twitter from the famous billionaire for about ً 44 billion. Here’s how the deal came about:
Mr Musk’s hand may be strengthened by the uncertainty his bid has created inside Twitter, which could potentially make it difficult for the company to continue independently. The company has struggled to attract customers and generate more revenue, and on Thursday, Mr. Agarwal fired two top executives, halted new recruits and vowed to cut costs.
In his tweets on Friday, Mr Agarwal said he was making changes because the deal with Mr Musk was “not an excuse to avoid making important decisions for the company’s health.” He added that Twitter was part of an industry that was “in a very challenging macro environment.”
Mr Musk has vowed to use his personal fortune to finance the deal for Twitter, a project that has been hit by recent stock prices, including Tesla. Tesla’s stock has fallen nearly 30 percent in the past month. Mr Musk is both selling shares of Tesla and raising personal loans to raise cash.
If a deal were to be finalized, business challenges on Twitter could force Mr Musk to pull his Tesla stock further to close potential financial loopholes. And any problems at Tesla that have caused his stock to plummet could trigger clauses in Mr Musk’s personal debt that would further limit his ability to invest in Twitter and guarantee more. Will need to be added.
Tesla’s stock rose on Friday after Mr Musk’s comments.
Following Mr Musk’s tweets, shares of Twitter and Tesla could be checked for fluctuations. The Securities and Exchange Commission accused Mr Musk of securities fraud in 2018 when he falsely tweeted that he had obtained funding to privatize Tesla, raising carmaker shares by 6%. Mr Musk and Tesla paid a 40 million fine for the tweet. A shareholder lawsuit is being filed against Mr. Musk over the tweet.
“If I had been his lawyer, I would have spent the morning figuring out the implications of all this under federal security law,” said Mark Leaf, a partner with Fagre Drinker and a former Securities and Exchange Commission lawyer. ۔