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Elon Musk’s Big Buyout Could Be Reversed, Says Twitter CEO Parag Agarwal

Elon Musk's Big Buyout Could Be Reversed, Says Twitter CEO Parag Agarwal

Twitter CEO Parag Agrawal said on Friday that he expects the deal with Elon Musk to go through but that he will continue to lead the firm if it does not.

“While I expect the deal to close, we need to be prepared for all scenarios and always do what’s right for Twitter,” Agarwal said in a tweet. “I’m accountable for leading and operating Twitter, and our job is to build a stronger Twitter every day.”

Musk previously claimed that the acquisition’s status is pending until he gets to know more about the number of fake accounts on the site. The stock plummeted by roughly 10%, adding to the company’s earlier losses. It is currently valued at about $13 billion less than Musk’s previously agreed-upon $44 billion offer.

The billionaire Tesla CEO may not be able to go away quietly. He’d be liable for a $1 billion breakup fee and potentially billions more in breach of contract litigation. Since no external barriers, such as regulatory or financial intermediaries, or forgery, are delaying the purchase from closing, Musk would be legally obligated to pay the fines.

Agarwal’s tweets come a day after the firm announced that it was suspending hiring, rescinding offers, and cutting expenditures. In addition, two other executives have departed the company, including Kayvon Beykpour, the head of consumer products, who claims Agarwal asked him to go.

“People have also asked: why manage costs now vs after close?” Agarwal wrote. “Our industry is in a very challenging macro environment right now. I won’t use the deal as an excuse to avoid making important decisions for the company’s health, nor will any leader at Twitter.”

Agrawal also stated that he would strive to increase transparency in Twitter’s efforts to improve public interactions on the site.