Elon Musk Twitter Deal: After sealing a $44 billion deal with Tesla CEO Elon Musk, Twitter believes it may find it difficult to retain key employees and ads due to growing uncertainty about the future. Twitter said in its regulatory filing on Monday about such risks for the company.
In his exchange communication on Monday, Twitter While it may be difficult to retain key employees following the deal, “there is a possibility that our current employees may be distracted, and their productivity has declined as a result of the uncertainty about the merger.”
Twitter further said that it would be difficult to transition its business until the $44 billion deal is completed. Twitter has banned recruitment and app updates after the deal with Elon Musk. It will also have to stop future acquisition projects. Twitter said that all these developments are expected to increase the Twitter share price and may go down further in the near future.
“Any disruption of our business as a result of the announcement and pending merger, including adverse changes to our relationships with employees, advertisers and other business partners, may continue or be accelerated if the merger is not completed or significantly delayed.” The influential social networking platform said in its regulatory filing.
On 25 April 2022, Twitter said that Tesla CEO Elon Musk had agreed to buy the social networking platform Twitter for $54.20 per share in cash. The Elon Musk Twitter deal represents a 38 percent premium to the Twitter share price as of April 1, 2022, when the Tesla CEO himself revealed that he owned more than 9 percent of Twitter shares. If the deal is completed, it would end Twitter’s run as a publicly traded company.