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Elon Musk Says His Takeover of Twitter Is ‘On Hold.’


Twitter and Mr. Musk have been, up to now, working collectively to shut the deal, an individual with data of the matter mentioned, although these dynamics can rapidly change.

Mr. Musk’s hand could be strengthened by the uncertainty his bid has created inside Twitter, which might doubtlessly make it tougher for the corporate to proceed independently. The corporate has struggled so as to add customers and generate extra income, and on Thursday, Mr. Agrawal fired two top executives, halted new hiring and pledged to slash spending.

In his tweets on Friday, Mr. Agrawal mentioned he was making modifications as a result of the cope with Mr. Musk was not “an excuse to keep away from making essential selections for the well being of the corporate.” He added that Twitter was a part of an trade that was “in a really difficult macro surroundings — proper now.”

Mr. Musk has pledged to make use of his personal fortune to finance the deal for Twitter, a plan that has been affected by a latest plunge in inventory costs, together with Tesla’s. Tesla’s inventory has fallen practically 30 % prior to now month. Mr. Musk is each promoting Tesla shares and placing them up as collateral for private loans to boost money.

If a deal had been to be accomplished, enterprise challenges at Twitter might pressure Mr. Musk to attract additional on his Tesla inventory to plug potential monetary holes. And any drawback at Tesla that induced its inventory to fall far sufficient might set off clauses in Mr. Musk’s private loans that might require him so as to add extra collateral, limiting his potential to spend money on Twitter.

Tesla’s inventory rose on Friday after Mr. Musk’s feedback.

The fluctuations in shares of Twitter and Tesla that adopted Mr. Musk’s tweets might draw scrutiny. The Securities and Alternate Fee charged Mr. Musk with securities fraud in 2018 after he falsely tweeted that he had secured funding to take Tesla non-public, sending the automaker’s shares up 6 %. Mr. Musk and Tesla paid a $40 million penalty for the tweet. A shareholder lawsuit in opposition to Mr. Musk over the tweet is ongoing.

“If I had been his lawyer, I might be spending the morning scrambling to determine what the implication of this all is underneath the federal safety legislation,” mentioned Marc Leaf, accomplice with Faegre Drinker and a former lawyer with the Securities and Alternate Fee.



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