Twitter's stock price has dropped, its public image is damaged, and employee morale is tanking. And that was all before Elon Musk told Twitter and the SEC on Friday that he wants out of the $44 billion deal to buy the company. Twitter said it will fight Musk on that, but analysts and employees have a hard time seeing much good coming of this for the company, the Washington Post reports. "Musk is destroying Twitter," one employee said. "This was worst case scenario for Twitter, and now it's happened," an analyst said.
By the time this is settled, potential investors or even buyers could see Twitter as less valuable than it was, financially and otherwise. Wedbush Securities estimates shares could fall to $25 and $30 Monday morning, off more than 30% from Friday afternoon, just before Musk's SEC filing. Some legal minds expect Twitter to win a fight with Musk, but the battle could have drawbacks for the company. Important business metrics might have to be made public, which could bring more questions from investors; Twitter didn't make a profit until 2018. And investors might wonder, a professor said, whether there's something to Musk's suggestions of "issues with the fundamental nature of the business."
As chaos reigns, many Twitter employees are looking for other jobs, per the Post, not only because of the uncertainty about the company but because of the changes that have already taken place. Twitter's culture of transparency has been compromised because of information blackouts prompted by the negotiations. Late Friday, employees received a memo telling them to "refrain from Tweeting, Slacking, or sharing any commentary about the merger agreement," per the Verge. They're also unhappy with the increased scrutiny of Twitter and the hit they'll take if the stock price plummets. An employee who had favored the deal now calls the situation "totally depressing." (Read more Elon Musk stories.)