In premarket trading, Twitter’s shares slipped further, falling 2 percent.
The company said in a statement accompanying the regulatory filing on Tuesday that it was “committed to completing the transaction at the agreed price and terms as promptly practicable.” In the filing, which explains the background and rationale for the deal, Twitter said that “if the merger is not completed, and depending on the circumstances that the merger is not completed, the price of our common stock may decline.”
Mr. Musk, who also leads the electric automaker Tesla and rocket company SpaceX, has unleashed confusion over the state’s deal. Last Friday, he tweeted that his purchase of Twitter was “Temporarily hold on“Until he could get more details about the volume of spam and fake accounts on the platform. He later followed up saying he was still “committed“To the deal.
How Elon Musk’s Twitter Deal Unfolded
A blockbuster deal. Elon Musk, the richest man in the world, capped what seemed to be an improbable endeavor by the famously mercurial billionaire to buy Twitter for roughly $ 44 billion. Here’s how the deal unfolded:
Twitter executives have become targets of Mr. Musk.
On MondayParag Agrawal, Twitter’s chief executive, posted a lengthy Thread detailing how the company calculates its number of bots. He said the company had an “overview of the estimation process with Elon a week ago.” Mr. Musk responds to the thread with a poop emoji.
Last month, Mr. Musk went after Twitter’s top lawyer who oversees the platform’s content moderation policies. Mr. Musk’s supporters followed his lead by posting a flood of abuse at the company executive.
Mr. Musk did not immediately respond to a request for comment. Twitter declined to comment.
Tech company stocks have taken a beating since Mr. Musk first announced his acquisition of Twitter earlier this month. Shares of Tesla, which is Mr. Musk’s main source of wealth is about 30 percent lost.
Renegotiating a deal would not be easy. In addition to a $ 1 billion breakup fee, Mr. Musk’s deal with Twitter includes a “specific performance clause,” which gives the company the right to sue him and force him to complete the deal so long as the debt financing he is corralled is still intact.
But Mr. Musk has also created very public headaches for Twitter. Over the weekend, he tweeted That Twitter’s legal department had “called to complain” that it violated a nondisclosure agreement discussing its bot sample size of 100. Mr. Musk’s deal with Twitter also has a nondisparagement clause that prohibits him from tweeting negatively about the transaction.
The two sides have continued so far as if there is a deal. Teams for both sides held an historic scheduled meeting on Friday. (Twitter confirmed the meeting was “part of the transaction planning process.”) On Friday, Bret Taylor, Twitter’s chairman, tweeted: “We remain committed to our agreement.“
Mike Isaac contributed reporting.