Twitter Says Musk Deal Uncertainty Could Cost Staff, Advertisers
(Bloomberg) -- Twitter Inc.’s $44 billion deal to be acquired by Elon Musk means it risks losing advertisers and employees, who may be concerned about the company’s uncertain future.
Twitter said it may be difficult to attract and retain key people, and mentioned “the possibility that our current employees could be distracted, and their productivity decline as a result, due to uncertainty regarding the merger,” the company said in a regulatory filing Monday.
The company added that it would be difficult to make changes to its business until the deal is completed. Twitter has paused hiring and app updates while the acquisition is pending. It could still fall apart, which would also be bad for business, and likely affect the company’s stock, Twitter said.
“Any disruptions to our business resulting from the announcement and pendency of the merger, including adverse changes in our relationships with employees, advertisers and other business partners, may continue or intensify in the event the merger is not consummated or is significantly delayed,” Twitter said in the filing.
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