Twitter’s SEC filings reveal a lot of concerns about Elon Musk’s proposed acquisition of the company. The popular microblogging platform is worried about many uncontrollable variables that may surface. Moreover, a large portion of Twitter employees may leave the company in the coming months due to the abrupt change in management.
While Twitter is befuddled about the merger, Elon Musk doesn’t seem too concerned about the issues raised in SEC filings. Elon Musk took a massive loan to buy Twitter for a whopping $44 billion.
Twitter’s concerns in the SEC filing
“During the period prior to the closing of the merger, our business is exposed to certain inherent risks and certain restrictions on our business under the terms of the Merger Agreement that could harm our business relationships, financial condition, operating results, cash flows, and business,” Twitter said in the SEC filing.
Twitter employees are already divided on the topic of the new management taking over. Most of them aren’t okay with the aggressive takeover of the company by Elon Musk. However, some are rooting for a positive change once the deal closes.
There is massive unrest and uncertainty in the Twitter workforce and the coming months might get even worse. Apart from the expected mass exodus of employees, the social media giant could have difficulties in finding appropriate replacements for the resigning employees.
Twitter worries about the key changes in management which would be harder to replace on short notice. Moreover, people would also be skeptical about joining Twitter during the period of transition.
Another important concern is the damage to the advertisement revenue. Advertisers may lose interest and trust in Twitter and may withdraw from the platform for time being, limiting the cash inflow.
Elon Musk’s intentions
Amid all the employee unrest, Elon Musk isn’t too disturbed about the mass exodus. He said that it’s a free country and anyone can pick their place of occupation. However, his plans to revamp the social platform are a hot topic of discussion on Twitter and other social platforms.
Elon wants to make Twitter accessible to all. He isn’t happy with the current percentage of Americans who use Twitter and wants more people to join the platform. Apart from that, he wants to make changes to the recommendation algorithm and make it open source. He also wants to add an Edit tweet button which seems like a definite possibility now.
There are many other bizarre ideas that Elon Musk has in his mind. He is quite vocal about them on the platform, which he now owns completely. What do you think of Twitter’s SEC filing? Are the concerns legitimate and will it face massive losses in the coming months? Share your thoughts in the comments.