- Twitter on Tuesday announced plans to finalize its $44 billion merger deal with Elon Musk.
- This despite Musk’s apparent hesitation in recent days to pursue negotiations.
- The two parties had agreed to rules that ensured the deal was done, including a clause that forced it to be done.
Twitter has said it plans to complete its $44 billion merger deal with Elon Musk, even as the Tesla CEO appears to be hesitant about the deal.
“Twitter is committed to completing the transaction at the agreed-upon price and terms as quickly as possible,” he said in a Securities and Exchange Commission filing released late Tuesday, referring to Musk’s bid to take private the society.
“We intend to complete the transaction and enforce the merger agreement,” the board also told Bloomberg in a statement. A Twitter spokesperson declined to comment when approached by Insider.
On Tuesday, Musk stalled negotiations, saying the takeover could only go ahead if Twitter CEO Parag Agrawal proved the platform had less than 5% fake accounts. Earlier that day, Agrawal had mentioned that “we’re not great at catching spam”.
Musk also suggested a day earlier that he could renegotiate the deal at a lower price, Bloomberg reported.
In response, Twitter posted its account of how the deal was negotiated over several weeks with Musk on Tuesday evening. Twitter suggested Musk made no obvious effort to find out more about Twitter’s activities, including the number of spam accounts on its platform, before proposing to make Twitter private on April 25.
Twitter and Musk set terms and conditions last month to ensure both parties stick to completing the takeover deal, which is expected to end in October. Each side has agreed to pay the other side a $1 billion fine if it fails to comply with the agreement.
If negotiations look shaky, Twitter could also enact a “specific performance” clause to force Musk – through a lawsuit – to close the deal if there’s already funding in place and all conditions are met. fulfilled.
The company’s filing on Tuesday raised the possibility that it could sue Musk and get a settlement from him, Reuters reported.
The fall in Twitter’s share price suggested that investors were confident that Musk’s current takeover bid could fail. It closed at $38.32 on Tuesday, nearly 30% below Musk’s offer of $54.20 per share.