Twitter deal: Elon Musk’s Twitter deal is progressing, not “on hold,” executives tell staff

Twitter Inc. executives told employees Thursday that the $ 44 billion deal to sell the company to a billionaire Elon Musk is moving forward as planned and that they will not renegotiate the agreed price of $ 54.20 per share.

Vijaya Gadde, Twitter’s lead attorney and head of politics, also told workers at a full-fledged meeting that “there is nothing like a pending deal,” according to people who attended the meeting. Last week he dismissed Musk’s claims that he suspended the deal as he learned more about the number of bots and spam accounts on the social media service.

Shares on Twitter were up about 2% on news of the meeting, first reported by Bloomberg. Previously, the shares had fallen to 1.7%.

Other senior Twitter executives, including chief executive Parag Agrawal and chief finance officer Ned Segal, also turned to employees, the people said, who asked not to be identified to discuss internal affairs. The company-wide video call was intended for leadership to discuss the deal and provide more details following Twitter’s filing of its proxy statement with the Securities and Exchange Commission this week, which outlined the history and terms of the transaction.

Executives addressed a number of questions about the transaction, including whether Twitter would attempt to legally force Musk to buy the company under its deal. Gadde assured employees that Musk must “do all he can” to make sure his funding is in order, and that it is possible that Twitter could try to “enforce” the terms of the deal “if we ever need to do so. a court. “He added that getting to that step would be” pretty rare. ”

Musk earlier this week hinted that he would be interested in renegotiating his Twitter deal. The company’s stock is currently trading at $ 37.45 per share, well below the offer price.

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Thursday’s assembly was the latest in a series of internal meetings intended to help employees better understand the sales process. Segal discussed the gap between Twitter’s share price and Musk’s offer, explaining to staff how this reflected some doubts that the deal would go through. He also stated that executives are still interacting with Musk and his team and working with them “regularly” throughout the process to prepare for Musk’s take over. Segal also discussed how Twitter’s board of directors came to the decision to sell to Musk, which included an analysis of Twitter’s commercial projections if a deal didn’t happen.

Gadde added that he believes Musk will be able to vote for his shares at Twitter’s annual shareholders’ meeting, which is scheduled for May 25. The shareholders’ vote on the approval of the agreement will take place at a later date.

Twitter has been in a state of limbo since the company’s board of directors accepted an offer from Musk in late April. Musk continued to criticize Twitter and his policies despite him accepting the deal and recently suggested that the company was lying about the number of daily users that would be classified as spam. He said the deal was “on hold” until he got more information. After Agrawal posted a lengthy thread earlier this week explaining Twitter’s methodology for counting spam accounts, Musk responded to the CEO with a poop emoji.

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