Elon Musk announced that his $44 billion bid to buy Twitter was “temporarily on hold,” Nearly 40 days have passed and it looks like that the two sides are still on a stand-off.
Elon Musk stated there are still some unsolved matters of the Twitter deal:
On Tuesday, During a random Q&A at Bloomberg’s Qatar Economic Forum Elon Musk stated that “there are still a few unsettled matters” in regard to the Twitter deal going through, including whether Twitter’s shareholders will approve it.
The statement came on the same day that Twitter’s board without any opposition recommended shareholders said yes to Elon Musk’s bid to buy the company in an SEC filing, mentioning that “the merger agreement is advisable and the merger and the other transactions contemplated by the merger agreement are…in the best interests of Twitter and its stockholders.”
Musk’s weeks of interrupting have led many to theorize that he is attempting to turn out of the deal because of the general market volatility that the Tesla CEO has frequently voiced concerns about. “A recession is inevitable at some point,” he told everyone who attended the Bloomberg event.
Elon Musk wants the clarity about the number of spam accounts on Twitter:
“As to whether there is a recession in the near term, I think that is more likely than not. It’s not a certainty, but it appears more likely than not.”
He also elaborated on plans to lay off a chunk of Tesla’s staff due to his “super-bad feeling” about the economy, saying that the car manufacturer will cut about 10% of its “salaried workforce, which is actually just really only a 3%, 3.5% reduction in total headcount and not super material.”
Meanwhile, he continued to clear stoping the Twitter deal by claiming that the board has not been coming forward to tell about the number of spam accounts on Twitter. “You’ve probably read about the question as to whether the number of fake and spam users on the system is less than 5% as Twitter claims, which I think is probably not most people’s experience when using Twitter,” he said.
“So we’re still awaiting resolution on that matter, and that is a very significant matter.” Twitter has worked to settle this dispute by offering to provide Musk with a “firehose” of internal data to comb through, per the Washington Post report earlier this month.
Elon Musk claims that the company breached its end of the merger deal:
The trial at transparency comes to be a direct response to Musk’s claim that the company forced itself through its end of the merger deal by “actively countering and thwarting” his efforts to obtain information on the makeup of the site’s user base.
Earlier this month, a Twitter spokesperson said that the company is collaborating with Musk’s data requests and decides to “close the transaction and implement the merger agreement at the agreed price and terms.”
Rounding out the three issues that “need to be resolved” before the Twitter buyout can be completed is the question of whether the debt financing for the deal will “come together,” Elon Musk said at the forum. He decides to pay for the deal using $33.5 billion in personal equity and $13 billion in debt financing from several banks, including Morgan Stanley, Bank of America, and Barclays.
Elon Musk wished to start with the acquisition during his first meeting:
He also outlined his grandiose vision for the site, expressing hope that “80% of North America and perhaps half the world” will eventually join Twitter. “My aspiration for Twitter, or in general for the digital town square, would be that it is as inclusive—in the broader sense of the word—as possible,” he explained.
“That means it must be something that is appealing to people. It obviously cannot be a place where they feel uncomfortable or harassed, or they’ll simply not use it.”
Last week Elon Musk repeated his wish to make a start with the acquisition during his first meeting with Twitter employees. Still, the company is currently trading at $38.63, a far cry from Musk’s $54.20-per-share offer price and a sign of continued market doubtfulness toward the deal’s feasibility.
Politics also came up on Tuesday, as Elon Musk—who last week voted for a Republican for the first time and said he was leaning toward Ron DeSantis in 2024, should the Florida governor run for president—was asked if he’d think of voting for Donald Trump so he could enter the race. “I think I am undecided at this point on that election,” Musk said.