Elon Musk will host an all-hands virtual meeting with Twitter, Inc. (NYSE: TWTR) employees on Thursday, apparently in a bid to allay their apprehensions and win over their confidence. Prominent Tesla, Inc. (NASDAQ: TSLA) bull and Wedbush analyst Daniel Ives delved into what could transpire in the meeting.
Step In 'Right Direction:' Thursday's meeting is "another clear step in the right direction toward the fructification of the deal," Ives said. The analyst viewed this as a "smart strategic move" as Twitter employees haven't been properly apprised over the past few weeks. They may have many questions during this volatile period of uncertainty, he added.
Probable questions will likely include details on the deal timing, Musk's intent in closing it, and the likelihood of his shutting down the San Francisco headquarters and moving employees to Austin, Texas, Ives said.
Musk is also likely to be probed about workplace flexibility, possible layoffs, and his real motive behind acquiring the social media platform, Ives said.
Related Link: What This Tesla Analyst Makes Out Of Elon Musk's Warning Of A 'Tough Quarter'
Deal Value Likely to Be Cut Back: Ives said the previously negotiated $54.20/share deal value is out of the question. This, according to the analyst, is reflected in Twitter's current stock price/deal spread. Investors have discounted the possibility of Musk renegotiating the deal on the fake account issue, he added.
Ives also brought up the possibility of Musk walking away from the deal by paying the $1 billion breakup fee. But he cautioned that this would result in a long, brutal court battle.
Tesla and Twitter shareholders are both very eager to resolve the deal sooner rather than later, the analyst said.
Ives maintained an 'outperform' rating and $1,000 price target for Tesla shares.
Price Action: Twitter closed Wednesday's session 2.07% higher at $37.99 and Tesla rallied 5.48% before ending at $699, according to Benzinga Pro data.
