Musk failed to bargain? Twitter exec says it won’t renegotiate purchase price

Source: Wall Street News

Twitter executives told Twitter employees at an all-hands meeting on Thursday that Tesla CEO Elon Musk’s potential deal to buy Twitter was progressing at the expected pace and that “no” the so-called deal was “hit the pause button.” statement. Twitter executives also said it would not renegotiate the agreed price of $54.20 a share.

After you sing, we will appear, and the Twitter acquisition, one of the largest acquisitions in the history of the Internet, has a new plot.

Following the Wall Street News last week mentioned earlier, Musk said that the fake account was 4 times what Twitter claimed. If this is not clarified, the transaction cannot be advanced. This week, Musk launched an “unofficial vote” on Twitter. And called on his long-time “enemy” the SEC to intervene to investigate the number of real users of the Twitter platform; on Wednesday, Musk responded by calling his mentally retarded Twitter executive “destroying free speech and mocking Asperger’s.” patients”.

Twitter executives told employees at an all-hands meeting on Thursday, May 19 that the $44 billion sale of the company to billionaire Musk was on track and that they would not renegotiate the agreed-upon deal. Price of $54.20 per share.

Twitter’s senior lawyer and policy director, Vijaya Gadde, told employees at an all-hands meeting that “there is no such thing as a deal being put on hold,” according to those who attended the meeting. In addition, other top executives including CEO Parag Agrawal and CFO Ned Segal also addressed the staff.

At the meeting, Gadde assured employees that Musk must “do everything in his power” to keep his fundraising going, and said that “if we need to do this in court, it’s possible that Twitter will try to ‘enforce’ the terms of the deal,” though It is “relatively rare” to go this far.

I believe Musk will be able to vote on his stake at Twitter’s annual shareholder meeting scheduled for May 25.

Musk’s recent moves suggest he’s backing away from acquiring Twitter or wanting to restart talks to lower the price, as Tesla’s market value has evaporated by more than $400 billion amid a persistent market downturn. pledged more than $10 billion in Tesla shares as collateral to secure financing for the acquisition of Twitter.

An earlier Wall Street News article mentioned that if Musk really chooses to give up on acquiring Twitter, he will face not only a simple $1 billion breakup fee, but also a breach of contract lawsuit from Twitter, which may make him Billions of dollars more. The “hold on the deal” may just be a prelude to Musk’s desire to restart negotiations and complete the acquisition at a lower price.

But Twitter appears to be standing firm, arguing that Musk will buy the company at its agreed price. Twitter CFO Segal told employees during the meeting that Twitter executives are still in touch with Musk and his team and are working with them “regularly” to close deals, the report said, in addition to discussing how Twitter’s board is doing The decision to sell to Musk included an analysis of Twitter’s business forecasts had the deal not taken place.

Although Twitter executives are confident that the deal can be reached, and Twitter’s stock price has turned up instantly, but from the closing, the market may not buy it. On Thursday, Twitter closed down 1.19% at $37.29, which is in line with the agreed price of $54.20. The purchase price is 31% lower than that.

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