Twitter Reportedly Tells Employees Musk Deal Not ‘On Hold’

Topline

Twitter’s top lawyer Vijaya Gadde told employees at an all-hands meeting on Thursday that the $44 billion acquisition offer from billionaire Elon Musk was moving forward and there was “no such thing” as a deal being “on hold,” Bloomberg reported, a week after the Tesla CEO said the deal was paused until the social media company could provide proof fewer than 5% of Twitter accounts are fake.

Key Facts

Twitter executives told employees the deal will proceed as planned and the company would not renegotiate Musk’s agreed-upon price of $54.20 per share, Bloomberg reported, citing sources familiar with the meeting.

Twitter’s Chief Financial Officer Ned Segal also told workers Twitter is regularly engaging with Musk and his team, Bloomberg reported.

The report comes days after Musk claimed he could not “move forward” with the offer because he claimed Twitter CEO Parag Agrawal “publicly refused to show proof” that fewer than 5% of accounts on the platform are fake or spam accounts.

The meeting comes after Twitter shares fell again earlier this week after Musk suggested he might try to renegotiate the deal at a lower price.

Segal explained to employees that the discrepancy between Twitter’s stock price—which is currently trading at $37.60 per share—and Musk’s offer reflected doubt over whether the deal would be completed, according to Bloomberg.

Gadde, meanwhile, told employees Musk must “do everything he can” to secure financing for the deal, adding it was possible the company would seek to enforce the terms “in a court,” although she said that move would be “pretty rare.”

Key Background

Twitter’s board last month approved a $44 billion takeover offer from Musk, who is seeking to solidify his financing. But the Tesla CEO claimed last Friday the deal was paused pending more details on the company’s calculation that fake or spam accounts comprise less than 5% of its users. Two hours later, he said he was “still committed to the acquisition.” Days after, though, he continued to dispute the company’s spam figures. Musk has said he believes fake accounts could make up at least 20% of accounts on the platform. He claimed Agrawal refused to provide details on the calculation, possibly referring to a Twitter thread where the Twitter CEO said it wasn’t possible for outside sources to estimate the numbers. Twitter on Tuesday said it was committed to seeing the deal with Musk through at the previously agreed-upon price and terms.

Big Number

More than half a million. That’s how many spam accounts Twitter suspends every day, according to Agrawal, who claimed many of the suspensions occur before users even see the accounts.

Tangent

The report comes as several high-ranking Twitter executives have left the company in recent weeks amid a period of limbo for the company. Agrawal dismissed Twitter’s head of consumer division and general manager for revenue last week, while the company’s vice president of product management, vice president of Twitter Service and head of data science left this week. The company is also planning to freeze most hiring and cut other costs such as travel, consulting and marketing, Bloomberg reported last week.

Further Reading

Elon Musk’s Twitter Deal Is Proceeding, Not ‘On Hold,’ Executives Tell Staff (Bloomberg)

Elon Musk Says Twitter Deal ‘Cannot Move Forward’ Until CEO Proves Fake Account Numbers (Forbes)

Two Twitter Leaders Out Amid Sale To Musk (Forbes)