Uncertainty Over Twitter’s Takeover Increases As CEO Prepares For ‘Other Scenarios’ While Experts Fear Elon Musk Can Be Sued For Walking Away
Posted: May 14 2022 by www.digitalinformationworld.com
Twitter and its takeover by Elon Musk is a topic surrounded by plenty of controversies. And while we previously reported how the deal is moments away from being closed, conflicting facts have arisen recently.CEO Agrawal mentioned how he was confident that the sale would be taking place and that meant putting complete ownership in Elon Musk’s hands. But that does not mean he’s hanging up his coat just yet because anything can happen.The CEO also mentioned how the company was preparing for other scenarios if plan A gets aborted. After all, he claims he’s driven to do what’s right for the company as a whole.He is still in charge and will be held accountable for all the leadership decisions and he says strengthening the platform is his biggest target these days.The news comes as Tesla and SpaceX CEO Elon Musk revealed on Friday how his decision is reportedly on hold because he’s still in the middle of trying to figure out how many fake accounts the app possesses.In addition to that, we saw shares sink by nearly 10%, forcing the company to take a major hit and that means it’s worth $13 billion. And that is much less than the billionaire’s initial bid which was estimated to be $44 billion.However, critics have recently highlighted that the world’s richest person may not be able to simply walk away from the deal by paying the staggering amount of breakup fee- a value of $1 billion.This is because Musk’s contract speaks of a lawsuit in the case the clauses are breached and the deal isn’t pulled through to the end. Hence, the end result would entail Musk losing out on billions more, as stated in a recent report published by CNBC.The comments from Agrawal come just one day after the app mentioned freezing hiring and slashing costs. In addition to that, we’ve witnessed two leading executives leave the firm, one of which was removed by the Twitter CEO himself.Agrawal has been in the hot seat for making such an abrupt decision and so many others are questioning why he is cutting expenses before the deal is closed versus after it. He tried to justify his actions by saying Twitter is going through a challenging phase and when things become more transparent, it would make more sense to the public.
- Also read: Elon Musk Wants Twitter to Have 69 Million Paying Subscribers by 2025, But Is That Realistic?