Elon Musk says his Twitter possession is ‘waiting’.
Twitter and Musk, so far, have been working together to close the deal, said those familiar with the matter, although those dynamics could change quickly.
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Blockbuster agreement. Elon Musk, the richest man in the world, has concealed what appears to be an impossible attempt by celebrity billionaire Mercural to buy Twitter for $ 44 billion. Here’s how the agreement was disclosed:
Musk’s hand may have been strengthened by the uncertainty that his bid was created on Twitter, which may make it difficult for the company to remain independent. The company has been trying to increase users and generate more revenue, and on Thursday, Agrawal fired two top executives, stopped hiring and promised to cut spending.
In his tweets on Friday, Agrawal said he was changing because the deal with Musk was not “an excuse to avoid making important decisions about the company’s health.” He added that Twitter is part of an industry that “is in a very challenging macro environment – right now.”
Musk has pledged to use his private funds to fund the Twitter deal, a plan that has been hit by a recent slump in stock prices, including by Tesla. Tesla shares have fallen nearly 30 percent in the past month. Musk is both selling Tesla shares and putting them up as collateral for personal loans to raise cash.
If the deal is successful, the business challenges on Twitter could force Musk to further leverage his Tesla portfolio to drill potential financial holes. And any issue that Tesla has caused its stock to fall far enough could trigger an excuse in Musk’s personal loan that requires him to increase his stock, limiting his ability to invest on Twitter.
Tesla shares rose on Friday after Musk comments.
The volatility of the shares of Twitter and Tesla that follow Musk’s tweets could attract scrutiny. The Securities and Exchange Commission has accused Musk of stock fraud in 2018 after he falsified that he had secured capital to take over Tesla privately, sending the automaker’s shares up 6 percent. Musk and Tesla paid a $ 40 million fine for the tweet. A lawsuit against shareholders against Musk over the tweet is ongoing.
“If I were his lawyer, I would spend the morning exploring the effects of all of this under federal security law,” said Marc Leaf, a partner with Faegre Drinker and a former attorney general for the Securities and Exchange Commission.