Twitter CEO says Elon Musk’s big buyout could be reversed

Twitter CEO says Elon Musk’s big buyout could be reversed

In a series of tweets sent Friday, Twitter CEO Parag Agrawal has revealed that Elon Musk’s deal to buy the company could fall through.

Prepare for all scenarios

While I expect the deal to go through, we need to be prepared for all scenarios and always do what’s right for Twitter,” Agarwal said. “I am responsible for the direction and operation of Twitter, and our job is to build a stronger Twitter every day.”

Musk already had tweeted earlier Friday that the case was on hold until he could determine how many fake accounts, like spam bots, were on the platform. This decision caused the stock to fall by almost 10%.

But getting out of the deal may prove more complicated than previously thought. Musk could have to pay a $1 billion reverse termination fee to Twitter and risk a breach of contract lawsuit that could cost him much more.

Indeed, in this case, there is no external reason why the agreement cannot be concluded, such as regulatory intermediation, third-party financing problems or fraud. Only these three reasons would allow Musk to withdraw from the agreement without any liability to Twitter.

A possible disengagement

So why is he claiming he could cancel the deal?

This could be to push Twitter to lower its price. “It’s probably a negotiation tactic on behalf of Elon,” Toni Sacconaghi, senior research analyst at Bernstein, said Friday. CNBC“Squawkbox”. “The market has gone down a lot. It probably uses the appearance of real active users as a trading ploy.

If he goes ahead with the cancellation of the deal, he is bound to face serious damage to his reputation that would make companies in the future unsure of selling to him and even doing business with him. This is an option that does not suit the billionaire entrepreneur!

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