Oh, it’s dangerous. Nothing good to see right here.

This week, as Musk maintains that his $44 billion takeover provide stays ‘on maintain’ as a result of questions over the accuracy of Twitter’s declare that 5% of its lively customers are pretend, Twitter itself has confronted its personal drama, related to the takeover push.

Having already misplaced a number of high executives, both straight or not directly stemming from the pending change in possession (in addition to former CEO Jack Dorsey exiting the corporate completely), Twitter is now dealing with a battle over its board members, with Silver Lake Companions’ Egon Durban resigning from the board after Twitter shareholders blocked his re-election.

Durban was given a Twitter board seat in 2020, following a push by Elliott Administration Group to purchase up Twitter shares, and drive Jack Dorsey out of his place as CEO. Elliott’s view was that Dorsey was underperforming, and it partnered with Silver Lake to place strain on the corporate to both enhance its backside line, or settle for a change in administration.

That result in Twitter implementing robust new income and development targets, which it just lately admitted that it’s not on observe to fulfill.  

Along with his work with Twitter and numerous different public firms, Durban has additionally been a longtime ally of Elon Musk, and earlier this week, Twitter shareholders voted to cease Durban from being re-appointed, in a transfer that many seen as an announcement of protest, of types, from Twitter buyers.

However as with all issues Elon and Twitter, it’s not that straightforward – at this time Twitter itself has refused to just accept Durban’s resignation.

In a assertion to the SEC, Twitter defined that Durban’s board re-election was probably rejected by shareholders as a result of him additionally serving on the board of six different publicly traded firms. Durban has vowed to take a step again from these different commitments, which Twitter says is sufficient to preserve him on its group.

As per Twitter:

“Whereas the Board doesn’t consider that Mr. Durban’s different public firm directorships will develop into an obstacle if such engagements have been to proceed, Mr. Durban’s dedication to cut back his board service dedication to 5 public firm boards by the Remediation Date appropriately addresses the considerations raised by stockholders with regard to such engagements. Accordingly, the Board has reached the dedication that accepting Mr. Durban’s Tendered Resignation right now just isn’t in the perfect pursuits of the Firm.”

Why does Twitter wish to preserve Durban on? It’s exhausting to say – particularly on condition that Musk has famous that he’ll be seeking to eradicate Twitter’s board if/when he turns into the platform’s proprietor.

The inclusion of representatives from key buyers, nevertheless, could guarantee Twitter maintains a degree of stability, in case the deal goes south.

And there may very well be one other key purpose to keep up the hyperlink between Twitter’s board and Musk.

On one other entrance, Twitter shareholders are additionally mulling a class-action lawsuit in opposition to Elon Musk over his Twitter takeover push, based mostly on the allegation that Musk has ‘violated California company legal guidelines on a number of fronts’ together with his Twitter acquisition commentary, successfully participating in market manipulation.

As reported by CNBC:

“In a single potential violation, they declare that Musk financially benefited by delaying required disclosures about his stake in Twitter and by briefly concealing his plan in early April to develop into a board member on the social community. Musk additionally snapped up shares in Twitter, the grievance says, whereas he knew insider details about the corporate based mostly on non-public conversations with board members and executives, together with former CEO Jack Dorsey, a longtime pal of Musk’s, and Silver Lake co-CEO Egon Durban, a Twitter board member whose agency had beforehand invested in SolarCity earlier than Tesla acquired it.”

Perhaps that’s why Twitter desires to maintain Durban in-house, as a result of each his previous dealings with Musk, which can assist ease the deal by means of, or to help shareholders of their class motion.

Durban’s present participation probably doesn’t maintain any extra authorized clout on this respect, however there could also be some linkage between these two features of the more and more messy Twitter deal.

And sure, there may be nonetheless a chance that the Musk takeover could not occur.

Musk himself has repeatedly and publicly vowed that he won’t pay for the corporate except it could persuade him that its information on pretend profiles is correct – although Twitter maintains that there’s no such factor because the deal being ‘on maintain’ and it is persevering with to organize for the ultimate transaction to be permitted.

However there might also be different issues, with the SEC now investigating Musk’s conduct within the lead-up to his Twitter takeover push. Add to that his many public criticisms and disclosures, which border on market manipulation (as per the proposed shareholder motion) and there may effectively be a breakpoint for Musk’s Twitter deal, the place authorities merely veto the method completely as a result of his conduct.

Might that be Musk’s plan? Numerous analysts have instructed that Musk is on the lookout for a approach out of the acquisition, and whereas the general sentiment is that Musk will, finally, be pressured to pay-up, and take possession of the app, there are nonetheless some authorized cracks that he may discover that might finish the transaction.

Which might be a catastrophe for Twitter.

Whereas buyers are sad with Musk proper now, particularly since his numerous feedback and critiques have tanked the inventory, Musk strolling away would depart Twitter in a a lot lesser state, with many product leaders gone, and a declining share worth that may be troublesome to right, given the assorted questions raised by Musk about its processes.

Might Twitter get itself again on observe, and again to development, if Musk have been to desert his takeover push?

In essence, Musk strolling away can be a giant, public assertion that Twitter just isn’t a superb funding, and because the media hype dies down, that might see curiosity within the app decline even additional, harming development for, doubtlessly, years to return.

Perhaps that, then, is Musk’s actual intent right here – to hurt the corporate a lot that it has no selection however to just accept a decrease provide worth, which may save Elon himself tens of millions in his takeover bid.

Both approach, proper now, it’s not wanting good, and there are various transferring components that have to be preserving present Twitter CEO Parag Agrawal up at night time.

It nonetheless looks as if the Elon period is coming, however when, precisely, is a complete different query.