On a series of tweets posted on Friday, TwitterCEO Parag Agrawal disclosed that the agreement to purchase the company might be successful.
Over the past several weeks, I''ve been focused on the company and haven''t spoken much publicly during this time, but I will do so.
Preparing for all scenarios
While I anticipate the agreement to close, we must be prepared for all scenarios and always do what is right for Twitter, according to Agarwal. Im accountable for leading and operating Twitter, and our goal is to constantly build a stronger Twitter.
Musk had already tweeted earlier on Friday that the transaction was put on hold until he could determine how many fraudulent accounts, like spam bots, were present on the platform. This move slowed the stock to about 10%.
It may be more complicated than previously thought to get out of the deal. Musk may have to pay a $1 billion reverse termination fee to Twitter and risk a lawsuit for contract breach, which he''d pay significantly more.
Because in this case there is noother reason the transaction cant close, such as regulatory intermediation, third-party financing concerns, or fraud. Only these three reasons would enable Musk to withdraw from the deal without a hostility to Twitter.
A possible walkout
Why is he claiming that he might cancel the transaction?
It may be to confuse Twitter to lower its costs.This is probably a negotiation tactic for Elon, Toni Sacconaghi, and Bernstein''s senior research analyst, according to CNBCs Squawk Box. The market has slowed a lot. Hes probably using the guise of true active users as a negotiation task.
If he fails to go ahead with the cancellation of the agreement, he is bound to suffer severe reputational hardships that would make businesses in the future unconcerned of selling to him and even doing business with him. Now, this option isn''t exactly beneficial for the billionaire entrepreneur!