Twitter Inc’s top lawyer Vijaya Gadde, while interacting with employees during an all-hands meeting, said the company won’t renegotiate the agreed-upon price of $54.20 per share
Twitter Inc. says deal with Elon Musk ‘not on hold’
Has Elon Musk actually put his $44 billion Twitter deal on hold? This is the pertinent question in minds of most people across the globe. Easing the curiosity of most, Twitter Inc.’s top lawyer Vijaya Gadde told employees that the acquisition offer by Musk is moving forward as planned. They were also told that the micro-blogging site won’t renegotiate the agreed-upon price of $54.20 per share.
A report by Bloomberg mentioned that Gadde, while interacting with Twitter employees during an all-hands meeting on Thursday, also informed that there is “no such thing as a deal being on hold.”
The Twitter lawyer was pushing back on claims from Musk over the past week that he is putting the deal on hold after learning more about the number of bots and spam accounts on the social-media platform.
Soon after the news shared during the meeting, Twitter stock jumped about 2 per cent.
Gadde also assured employees that “Musk must do everything he can to make sure he gets his financing in order, and that it’s possible Twitter could try and enforce the terms of the deal if we ever needed to do that in a court.”
Finance Chief of Twitter Ned Segal, who also interacted with the employees, said executives are still engaging with Musk and his team, and working with them “regularly” throughout the process to prepare for the possibility of him taking over.
Segal also talked about how Twitter’s board came to the decision to sell to Musk, which included an analysis of Twitter’s business projections if a deal doesn’t fructify.
Earlier this week, Musk said that he would not move forward with his $44 billion Twitter deal until the company provide public proof that less than 5 per cent of the accounts on the microblogging site are fake or spam.
The Tesla CEO in April had said that he will be buying Twitter for $44 billion.
In a tweet this week, Musk said: “20% fake/spam accounts, while 4 times what Twitter claims, could be much higher. My offer was based on Twitter’s SEC filings being accurate.”
He further wrote, “Yesterday, Twitter’s CEO publicly refused to show proof of <5% (spam accounts). This deal cannot move forward until he does.”
On 16 May, Musk spent much of his day in a back-and-forth with Twitter CEO Parag Agrawal, who posted a series of tweets explaining his company’s effort to fight bots and how it has consistently estimated that less than 5 per cent of Twitter accounts are fake.
Agrawal said the platform suspends more than a half-million seemingly bogus accounts daily, usually before they are even seen, and locks millions more weekly that fail checks to make sure they are controlled by humans and not by software.
Internal measures show that fewer than 5 per cent of accounts active on any given day at Twitter are spam, but that analysis can’t be replicated externally due to the need to keep user data private, Agrawal stated.
With inputs from agencies
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