Twitter executives tell staff they won’t renegotiate sale price with Elon Musk

Twitter executives told employees on Thursday that the $44 billion (41.5 billion euros) deal to sell the company to billionaire Elon Musk is going according to plan and that he will not renegotiate the agreed price. of $54.20 per share.

Vijaya Gadde, Twitter’s top lawyer and policy officer, also told workers in a show of hands that there was “no such deal pending,” according to people who attended. the meeting. She was pushing back against Mr Musk’s claims over the past week that he was suspending the deal while he learns more about the number of bots and spam accounts on the social media service.

Other senior Twitter executives, including chief executive Parag Agrawal and chief financial officer Ned Segal, also addressed employees.

The company-wide video call was for management to discuss the deal and provide more details after Twitter filed its proxy statement with the U.S. Securities and Exchange Commission, which described the history and terms of the transaction.

Twitter stock jumped about 2% on news of the meeting, which was first reported by Bloomberg. Previously, the shares were down 1.7%.

The executives answered a number of questions about the deal, including whether Twitter would try to legally force Mr. Musk to buy the company based on his deal. Ms Gadde assured employees that Mr Musk must ‘do everything he can’ to make sure he gets his funding in order, and that it’s possible Twitter could try to ‘enforce’ the terms of the agreement “if we ever needed to do it in a search”.

She added that reaching this milestone would be “pretty rare”. Earlier this week, Mr Musk hinted that he would be interested in renegotiating his Twitter deal.

The company’s shares are currently trading at $37.45 per share, well below the offering price. The general meeting was the latest in a series of internal meetings designed to help employees better understand the sales process.

Mr. Segal discussed the discrepancy between Twitter’s share price and Mr. Musk’s offer, telling staff how it reflected doubt over whether the deal would close. He also said executives were still in touch with Mr. Musk and his team and working with them “regularly” throughout the process to prepare for the possibility of Mr. Musk taking over.

Mr. Segal also explained how Twitter’s board came to the decision to sell to Mr. Musk, which included an analysis of Twitter’s business projections should a deal not occur. Ms Gadde added that she believed Mr Musk would be able to vote for his shares at Twitter’s annual shareholder meeting, scheduled for May 25.

The shareholder vote on the approval of the transaction will take place at a later date.

Twitter has been in a state of uncertainty since the company’s board accepted an offer from Mr Musk in late April. Mr Musk continued to criticize Twitter and its policies despite agreeing to the deal, and recently suggested the company was lying about the number of daily users that would be classified as spam. He said the deal was “on hold” until he got more information.

After Mr. Agrawal posted a lengthy thread earlier this week explaining Twitter’s methodology for counting spam accounts, Mr. Musk responded to the CEO with a poo emoji.

–Bloomberg