Twitter said it is still committed to selling the company to billionaire Elon Musk for the original $44 billion price and provided a detailed chronicle of how the deal went in a Securities and Exchange Commission filing Tuesday.
“Twitter is committed to completing the transaction as expeditiously as possible at the agreed price and terms,” the company said in a statement attached to the filing.
Musk, via tweets, has been expressing doubts over the deal in recent days, declaring that it is “temporarily on hold”, raising concerns about spam accounts on the platform, and undercutting Floats the possibility of negotiating. His announcements closed Twitter shares at $38.32 on Tuesday after agreeing to a payout of $54.20.
The 139-page SEC document shows it all started on Twitter in March, when Musk was tweeting about the company and its content moderation policies, among other topics. On March 26, he reached out to former CEO Jack Dorsey and the two talked about the future of social media. That same day, Musk contacted Twitter director Egon Durban and explored the possibility of joining the Twitter board.
On March 27, another meeting was set up with more Twitter board members, including CEO Parag Agarwal, with Musk laying out possible options including joining the board, taking Twitter private or launching a rival service to the social media giant. .
Those discussions continued over the following days, as Musk announced that he had acquired a 9% stake in Twitter, making him the company’s largest shareholder.
But Musk’s decision to step back from joining the board came after another discussion with Dorsey on April 5, in which Dorsey told Musk that the company would be better off going private and that he did not intend to remain on the board. .
Musk announced his offer to buy 100% of Twitter on April 14.
Musk said in an SEC filing that day, “I invested in Twitter because I believe in its potential to be the platform for free speech around the world, and I believe free speech is key to a functioning democracy.” is a social imperative.”
Musk continued, “My offer is my best and final offer and if it is not accepted, I will need to reconsider my position as a shareholder.” “Twitter has extraordinary potential. I will unlock it.”
Then, after extensive negotiations, Musk and Twitter struck an agreement for him to buy the company for $44 billion on April 25, with Musk pledging to change the algorithms and remove spam bots.
Dorsey lauded the agreement as the “right path” for the company.
“In theory, I don’t believe anyone should own or run Twitter,” Dorsey tweeted on 26 April. “It wants to be a public good at a protocol level, not a company. However, addressing the problem of being a company, Elon is the only solution I trust. I am on their mission to spread the light of consciousness. trust.”
The deal includes a $1 billion termination fee if either party backs out, and a specific performance provision allows a court injunction for the parties to enforce the agreement, as long as the financing takes place.
Still, Musk tweeted on Tuesday that “the deal cannot proceed” unless Agarwal publicly provided evidence that spam accounts accounted for less than 5% of users on the platform.
Musk responded to Agarwal’s tweets, which analyze the spambot percentage, with a poop emoji.
Musk has also said he would be willing to buy the company at a reduced price because of his concerns over spam accounts, in response to a question at the All-Summit tech conference in Miami on Monday.
Meanwhile, Twitter is making staff changes after three more senior employees quit, according to Bloomberg. Two other officers left last week.