Elon Musk Says Twitter Takeover Is ‘Pending’

One person with knowledge of the matter said that and Mr. have so far worked together to close the deal, but these dynamics could change quickly.

Mr. Musk’s hand may be strengthened by the uncertainty his proposal has created on Twitter, which could potentially make it difficult for the company to continue independently. The company struggled to add users and generate more revenue, and Mr Agrawal said on Thursday. fired two senior executivesstopped new hires and promised to cut spending.

In his tweets on Friday, Mr. Agrawal said the deal with Mr. Musk was making changes because it 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 promised to exercise his right. personal wealth To fund the Twitter deal, a plan that has been affected by the recent drop in stock prices, including that of Tesla. Tesla’s stock has dropped nearly 30 percent last month. Mr. Musk is both selling Tesla shares and putting them as collateral for personal loans to raise cash.

If a deal were to be completed, commercial difficulties at Twitter could force Mr Musk to pull more of Tesla stock to close potential financial gaps. Anything in Tesla that causes stocks to fall enough could trigger clauses in Mr. Musk’s personal loans that require him to add more collateral and limit his ability to invest in Twitter.

Tesla’s stock rose on Friday after Mr Musk’s comments.

Fluctuations in Twitter and Tesla’s shares following Mr. Musk’s tweets could draw scrutiny. The Securities and Exchange Commission accused Mr Musk of securities fraud in 2018 after he falsely tweeted that he had funded to take Tesla private and that the automaker had increased its shares by 6 percent. Mr Musk and Tesla paid a $40 million fine for the tweet. The shareholder lawsuit filed against Mr Musk over the tweet continues.

“If I were his lawyer, I would spend the morning struggling to understand what all this means under federal security law,” said Marc Leaf, partner at Faegre Drinker and former attorney for the Securities and Exchange Commission.

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