Twitter shares continued to slide in premarket trading, losing 2 percent.
The company said in a statement accompanying a regulatory filing on Tuesday that it “is committed to completing the transaction at the agreed price and terms as quickly as possible.” In the filing, which explains the background and rationale for the transaction, Twitter said that “if the merger does not complete, and depending on the circumstances causing the merger not to complete, our common stock price will decrease significantly can”.
Mr Musk, who also runs electric carmaker Tesla and rocket company SpaceX, has caused confusion over the status of the deal. Last Friday, he tweeted that his purchase of Twitter was “temporarily on hold” until he could learn more details about the volume of spam and fake accounts on the platform. He later added that he was still “committed” to the deal.
How Elon Musk’s Twitter deal unfolded
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A blockbuster deal. World’s richest man Elon Musk capped the infamous billionaire’s seemingly unlikely attempt to buy Twitter for around $44 billion. Here’s how the deal went:
The initial offer. Mr Musk made an unsolicited offer worth more than $40 billion for the influential social network, saying he wants Twitter to be a private company and he wants people to be able to speak more freely about the service.
Will the deal go through? In order for the deal to go through, shareholders must vote and regulators must review the offer first. The scrutiny is likely to be intense and questions remain about Mr Musk’s plans for the company, particularly after he hinted that the deal could be “temporarily suspended” as he gathered information about the volume of spam and fake accounts on Twitter. (He later said he was “still committed to the acquisition.”)
Twitter executives have become targets of Mr. Musk.
Twitter Chief Executive Parag Agrawal released a detailed report on Monday Thread detailing how the company calculates its number of bots. He said the company shared an “overview of the estimation process with Elon” a week ago. Mr. Musk responded to the thread with a poop emoji.
Last month, Mr. Musk took action against Twitter’s top attorney, who oversees the platform’s content moderation policy. Mr. Musk’s supporters followed suit, publishing a barrage of abuse against company management.
Mr Musk did not immediately respond to a request for comment. Twitter declined to comment.
Technology company stocks have taken a hit since Mr. Musk first announced his acquisition of Twitter earlier this month. Shares in Tesla, Mr Musk’s main source of wealth, have fallen nearly 30 percent.
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” that gives the company the right to sue him and compel him to complete the deal as long as the debt financing he’s cooped up intact remain .
But Mr. Musk has also been giving Twitter a headache very publicly. Over the weekend, he tweeted that Twitter’s legal department “called to complain” that he had violated a non-disclosure agreement regarding the bot sample size of 100. Mr. Musk’s deal with Twitter also includes a non-denigration clause that prohibits him from tweeting negatively about the transaction.
The two sides have so far carried on as if there was a deal. Teams from both sides held a previously scheduled meeting on Friday. (Twitter confirmed that the meeting was “part of the transaction planning process.”) On Friday, Twitter chairman Bret Taylor tweeted, “We remain committed to our agreement.”
Mike Isaac contributed reporting.