Twitter by Mr. Musk have, so far, been working together to finalize the deal, an expert on the issue said, although the dynamics could change quickly.
How Elon Musk’s Twitter Deal Worked
The blockbuster program. Elon Musk, the richest man in the world, concluded what seemed to be an impossible attempt by the famous billionaire to buy Twitter for about $ 44 billion. Here is how the plan worked:
Hand of Mr. Musk can be strengthened by the uncertainty that his tender has faltered within Twitter, which could make it difficult for the company to remain independent. The company has struggled to increase consumers and earn more revenue, and on Thursday, Mr. Agrawal fired two senior executives, suspended new appointments and promised to cut spending.
In his tweets on Friday, Mr. Agrawal said he was making changes because the agreement with Mr. Musk was not “an excuse to prevent making important decisions for the company’s health.” He added that Twitter was part of an industry that was “extremely vulnerable – right now.”
Mr Musk has promised to use his personal fortune to fund the deal on Twitter, a deal that has been affected by the recent fall in prices, including Tesla. Tesla stocks dropped nearly 30 percent in the past month. Bw. All Musk sells Tesla shares and puts them as collateral for personal loans to earn cash.
If the plan were completed, business challenges on Twitter could force Mr. Musk further draws its Tesla stock to close potential financial holes. And any problem with Tesla that caused its shares to drop considerably could lead to conditions in Mr. Personal loans. Musk that would need him to add more securities, and reduce his ability to invest on Twitter.
Tesla stocks rose Friday after Mr. Musk’s comments.
The depreciation of the shares of Twitter and Tesla following Mr. tweets. Musk can be examined. The Securities and Exchange Exchange Commission sued Mr. Musk for collateral fraud in 2018 after sending a false message on Twitter that he had secured funding to take Tesla privately, and sent the company’s shares at 6 percent. Mr Musk and Tesla paid $ 40 million for the tweet. The shareholders’ case against Mr. Musk about the tweet continues.
“If I were his lawyer, I would spend the morning struggling to figure out what all of this means under federal security law,” said Marc Leaf, a Faegre Drinker associate and former attorney for the Securities and Exchange Commission.