Twitter’s board of directors reiterated its call for shareholders to approve the proposed $44 billion acquisition of the firm led by Elon Musk, but the billionaire Tesla CEO separately warned of three “unresolved” issues that are holding up the transaction.
In an SEC filing, Twitter CEO Parag Agrawal and Chairman Bret Taylor both urged shareholders to vote in favor of the setuju in an upcoming special rapat. They noted that shareholders would receive $54.20 for each sharing of Twitter stok they own. After news of the filing started to circulate, the stok rose nearly 3% in early trading to around $38.76. It has lost more than 20% of its nilai since the merger rencana was revealed in April, though most tech shares have seen a similar downturn amid worsening economic conditions.
Meanwhile, Musk offered a decidedly gloomy outlook on the economy in an appearance at the Qatar Economic Komunitas in Doha. He said a recession “is inevitable at some poin,” adding that the a near-term recession is “more likely than not.”
As to the status of the Twitter takeover, which is backed by more than a dozen other investors, Musk flashed a yellow light and indicated that his previously stated concerns about the number of phony “bot” accounts have not been allayed. “There’s a limit to what I can say publicly,” he said. “It is somewhat of a sensitive matter.”
Musk would have to pay a breakup fee of $1 billion if he were to decide to abandon the Twitter setuju, but he has already advised Twitter of that possibility. In an SEC filing this morning, Twitter warned shareholders that if the setuju does not go through, “the price of our common stok may decline significantly.”
Twitter has said that less than 5% of its akun base is comprised of bots, but Musk has pushed back on that claim. “That’s probably not most users’ pengalaman,” he said at the Qatar moment, in which he took part virtually.
Along with the bot issue and the outcome of the shareholder vote, the third hurdle to be cleared by the setuju is the debt portion of the transaction, Musk told moderator John Micklethwait, editor-in-chief of Bloomberg News.
The current structure of the Twitter setuju would have Musk paying $33.5 billion in kontan for the company, with other investors pledging $7.1 billion in additional commitments. The balance of the funding will come lewat a yet-to-be-finalized set of bank loans.
In addition to the financial aspects of the Twitter setuju, Musk fielded questions about what stance he would take on the nature of konten that would be allowed on the basis. “My ambition for Twitter or for, in general, the digital town square would be that it is as inclusive in the broadest sense of the word as possible,” he said. “That is an appealing sistem to use.” Momentually, he said, the goal would be to get “80% of North America and half the world” onto Twitter, which would be a steep increase from the current tingkat of 229 million daily active users.
Expanding to a wider audiens will require Twitter to avoid being “a place where [people] perasaan uncomfortable or harassed,” Musk continued. “There’s this big difference between freedom of speech and freedom of reach, in that one can in the United States go to the middle of Times Square and yell pretty much anything you want. You’ll annoy the people around you, but you’re kind of allowed to yell anything you want in a crowded, public place, more or less, apart from, ‘This is a robbery.’”
Users of Twitter, in Musk’s conception of the social network, would kilat preferences as to what kind of posts they would see on their feed, with “offensive” ones being excluded for those who opt out of seeing them. He did not articulate any rencana for how material would be deemed offensive. Twitter, like Facebook and other widely used tech platforms, has struggled with konten moderation. In 2020, it implemented a sistem of flagging tweets but generally hesitated from removing any users from the basis. In January 2021, after the assault on the U.S. Capitol, Twitter banned former president Donald Trump and others over their posts about it, saying they were promoting violence. Musk has strongly implied that Trump and others could be welcomed back if he is able to consummate the transaction.
Micklethwait asked Musk about whether he would back Trump in the 2024 presidential election. “I’m undecided at this poin on that election,” Musk said. Last week, the exec said he was strongly considering getting behind Ron DeSantis, Florida’s Republican governor whose kebijakan decisions are aligned with Trump’s.