5 reasons that could lead to the failure of the deal to sell “Twitter” to Mask

It seems that the deal to sell the famous social network Twitter to the American business giant, Elon Musk, will be threatened with bankruptcy and collapse, as there are a number of factors that threaten to accelerate the cancellation, collapse and bankruptcy of the deal.

THE media Americans looked into a number of reasons and factors that could lead to the cancellation of the $ 44 billion deal, The Washington Post said in a report seen by Al Arabiya.net that there are 5 reasons that could accelerate the failure of the agreement and lead to its failure, and that Although it is “moving very fast towards completion”.

Musk had announced that he intends to acquire Twitter for $ 44 billion and outlined his plan to finance the deal by borrowing from banks, as well as financing about $ 21 billion from his own shares.

The “Washington Post” says the first of five factors that could lead to the deal’s failure are “Twitter shares,” as the stock price dropped last Wednesday to close at $ 48.64, and that’s far below the purchase price ($ 54.20 per share) which was agreed with Musk. .

Analysts said “this indicates that some investors were dismayed by the possibility of a deal failure.”

The second factor is “Tesla shares,” where Musk said he plans to fund about $ 21 billion from the deal with his own shares, meaning much of that will come from his large stake in “Tesla” company. for the auto electric, but the “Tesla” stock fell. Its price dropped dramatically the day after the Twitter acquisition was announced, and the drop led to a $ 100 billion cut in the stock’s market value, which in turn hurt Musk’s fortune, and that it could jeopardize the financing of the deal if the stock continues to decline.

The third factor, according to the Washington Post, is Musk’s tweets, as the man has more than 88 million followers on Twitter, where he shares everything about him and his work, and is also known for posting quite a few elements. controversial or influential in The market led him to get into trouble with the Securities and Exchange Commission.

The terms of his deal to acquire Twitter allow him to tweet about its acquisition “as long as these tweets do not demean the company or any of its representatives,” according to the Washington Post.

A source familiar with the process of concluding the deal, who spoke on condition of anonymity to describe confidential matters, said the clause only applies when Musk tweets or comments on the deal itself, hence negative comments on Twitter to the outside of this they do not violate the terms.

And the “Washington Post” cited that the “facilitating penalty clause” is also a factor in the deal’s failure, as “the terms of the deal include a $ 1 billion termination fee, which Musk or Twitter will have to pay. in case of withdrawal from the deal for specific reasons.

Analysts say the fees, which are no stranger to a deal of this size, aren’t high enough to prevent either side from pulling out.

The fifth and final factor threatening the Twitter deal is that Musk may change his mind, as the man seems eager to buy Twitter and join its board of directors, but he may change his mind. in any time.

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