Twitter CEO expects Musk deal to close but prepares for all scenarios

Parag Agrawal named CEO of Twitter on November 29, 2021.

Courtesy: Twitter

Parag Agrawal, CEO of Twitter said friday that he still expects the sale to Elon Musk to materialize, but he continues to run the company in case it doesn’t.

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

Musk tweeted earlier Friday that the deal was on hold until he uncovers more details about the number of fake accounts, like spam bots, that are on the platform. The stock fell nearly 10%, adding to the company’s recent drop in value. It is now worth around $13 billion less than the offer Musk agreed to last month of around $44 billion.

But Tesla’s billionaire CEO may not be able to walk away easily. He would be liable for $1 billion in severance pay and could face a breach of contract lawsuit that would cost him billions more, according to a previous CNBC report.

Agarwal’s comments through a series of tweets came a day after the company said it was freezing hiring, rescinding offers and cutting costs. Two executives also left the company, including consumer products manager Kayvon Beykpour, who said Agarwal asked him to leave.

“People have also asked, why manage costs now instead of after the close?” Agarwal wrote. “Our industry is in a very difficult macroeconomic environment – right now. I will not use the deal as an excuse to avoid making important decisions for the health of the business, nor will any Twitter executive. “

Agrawal added that he would try to bring more transparency to the work Twitter is doing to improve public conversations on the platform.

Subscribe to CNBC on YouTube.

LOOK: Elon Musk says he’s ‘still committed’ to Twitter deal

Leave a Comment