Twitter CEO Parag Agrawal sought to show calm the following Friday Another tumultuous day In a social media company. The culprit, as usual: Elon Musk from announce That morning, he was temporarily putting a hold on his $44 billion takeover bid while he was checking the exact percentage of Twitter users made up of fake accounts or spam.
Musk later insisted he “remains committed” to the acquisition, but investors were nonetheless wary, sending Twitter’s stock crashing 10 percent by noon Friday.
In typical Musk form, the billionaire sidestepped the company’s best practices by making statements via tweets, rather than filing an official stock profile.
Later that day, Agrawal also took to the podium To defend his leadership and recent executive reviews. “While I expect the deal to go through, we need to be prepared for all scenarios and always do what’s right for Twitter. I am responsible for leading and operating Twitter, and our mission is to build a stronger Twitter every day,” he wrote.
As explained the reason He had finished two of the company’s top leaders earlier this week, though some onlookers might view him as a “lame” CEO.
“Regardless of the company’s future ownership, here we are improving Twitter as a product and business for customers, partners, shareholders, and for all of you,” he said. The company is largely freezing hiring to reduce its overheads.
Agrawal, seemingly contradicting Musk, added that “you won’t see tweets from me about ‘topic of the day’ or on top of the audio clip, but rather on the ongoing, continuous, and hard work our teams are doing to improve the public conversation on Twitter.”
Spectators were initially skeptical of Musk’s decision to pause on the acquisition. Stock analyst Daniel Ives of Wedbush Securities described it as a “weird tweet” that would send Twitter “the 13th horror show on Friday.”
It wasn’t clear why Musk had new concerns about Twitter’s spam account estimates, given how little due diligence he had done before making his bid last month.
Armin Hovakimian, professor of finance at Baruch College, said Musk’s motives are hard to pin down. It is speculated that the billionaire is either just “on hold”, seeking to gain influence and lower the acquisition price, or is testing the waters about “whether he can back out” completely from the deal. In the latter case, Hovakimian added, the Tesla CEO might simply feel buyer’s remorse or, alternatively, “a financing package.” [is] Using this acquisition is becoming more expensive.”
Hovakimian doubted that Musk wanted to back out altogether, saying, “It’s not clear to me why he would need this position if he wanted to cancel the deal.” Moreover, the withdrawal would likely result in a $1 billion dismantling fee, and could cost Musk more after litigation.
As of early Friday, Twitter’s market capitalization had fallen to $31 billion, nearly 30 percent less than Musk’s takeover bid.
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