Twitter shares were down as much as 8% in premarket trading on Friday, as investors braced for some last-minute uncertainty surrounding Elon Musk’s $44 billion deal to buy the company.
The stock reaction, which rebounded somewhat later in the morning, followed a Bloomberg report that government officials Joe Biden are in early discussions about whether to subject some of Musk’s ventures to national security scrutiny, including the planned one. acquisition of Twitter. Questioned by CNN the government backed down on the report, which cited people familiar with the matter.
“We are not aware of any of these conversations,” National Security Council spokeswoman Adrienne Watson said in a statement. A Treasury spokesperson said the Committee on Foreign Investment in the United States “does not publicly comment on transactions that it may or may not be reviewing” by law and practice.
Among the equity investors who have pledged to provide funding to help Musk fund the deal are a number of foreign entities, including the sovereign wealth fund of Qatar and Saudi Prince Alwaleed bin Talal, who was already one of Twitter’s biggest investors before the proposed move. acquisition of Musk.
In response to a tweet about the Bloomberg report, one user wrote: “It would be hysterical if the government stopped Elon from paying more for Twitter.” Musk responded to that tweet with a “100” emoji, which normally indicates emphatic agreement, and a crying laughing emoji.
It is unclear, if any, what impact the reported security review could have on concluding a deal that is already subject to months of uncertainty. Musk has a week left to close the deal or face a rescheduled trial in the Delaware Court of Chancery, which could result in him being forced to acquire the social media company.
Twitter declined to comment on the story about the possible review; Musk’s representatives did not immediately respond to a request for comment.
By other accounts, the deal appears to be heading towards completion. In a separate report Thursday night, Bloomberg said Twitter and Musk’s bankers and lawyers are preparing the paperwork needed to complete the deal. Bloomberg also reported last week that the company had frozen employee stock accounts prior to closing the deal.
On a conference call this week to discuss Tesla’s results, Musk said he was “excited” about the deal on Twitter, but also admitted he’s “obviously overpaying” for it. “The long-term potential for Twitter, in my opinion, is an order of magnitude greater than its current value,” he said.
The Washington Post reported on Thursday that Musk told potential investors in the deal that he planned to get rid of nearly 75% of the company’s staff and that Twitter had already planned mass layoffs even if the deal did not pass, citing internal documents. and interviews with people familiar with the subject.
Neither Twitter nor Musk’s representatives responded to requests for comment on the layoff plans.
Following the Washington Post report, Twitter General Counsel Sean Edgett sent a memo to staff saying the company “has no confirmation of the buyer’s plans post-closing and recommends not following leaked rumors or documents, but awaiting the facts.” from us and the buyer directly,” according to a Bloomberg report. A Twitter spokesperson confirmed to the CNN the authenticity of the memo.
Musk had previously discussed the drastic reduction of Twitter’s workforce in personal text messages with friends about the deal, which were revealed in court documents, and did not rule out the potential for layoffs in a call with Twitter employees in June.
* CNN’s Matt Egan contributed to this story
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.
.jpg "Who is Lara Reado, the (presumed) new girlfriend of Jannik Sinner’s girlfriend")
