Twitter and Mr. Musk, so far, has been working together to close the deal, said a person familiar with the matter, although that dynamic could change rapidly.
How Elon Musk’s Twitter deal opened
A blockbuster deal. Elon Musk, the world’s richest man, has narrowed down an unlikely attempt by a famous billionaire to buy Twitter for about $ 44 billion. Here’s how the deal unfolded:
Mr. Musk’s hand could be strengthened by the uncertainty of his bid on Twitter, which could potentially make it difficult for the company to continue independently. The company has struggled to add users and generate more revenue and on Thursday, Mr. Agarwal fired two top officials, stopped new recruits and promised to cut costs.
In his tweets on Friday, Mr. Agarwal said they are making changes because of the deal with Mr. Musk was not “an excuse to avoid making important decisions for the health of the company.” He added that Twitter is part of an industry that is “in a very challenging macro environment right now.”
Mr. Musk has promised to use his personal fortune to finance the deal for Twitter, a plan affected by the recent fall in stock prices, including Tesla. Shares of Tesla have fallen nearly 30 percent in the past month. Mr. Musk sells shares of Tesla and puts up collateral for a personal loan to raise cash.
If a deal is to be finalized, the business challenges on Twitter are Mr. Musk will draw more on its Tesla stock to plug potential financial holes. And any problem with Tesla that caused its stock to drop enough is Mr. Musk’s personal loan, which will require him to add more collateral by limiting his ability to invest in Twitter.
Shares of Tesla rose after Mr on Friday. Musk’s comments.
Fluctuations in the shares of Twitter and Tesla that Mr. Can check Musk’s tweets. Securities and Exchange Commission In 2018, with securities fraud, Kasturi incorrectly tweeted that he had obtained funds to privatize Tesla, pushing the automaker’s shares up 6%. Mr. Musk and Tesla paid a 40 million fine for the tweet. Shareholder lawsuit against Mr. Musk continues to tweet.
“If I’d been his lawyer, I’d spend the morning trying to figure out what all of this application is under federal security law,” said Mark Leaf, a partner at Fagre Drinker and a former lawyer for the Securities and Exchange Commission.