Twitter shareholders are invited to take part in a vote, on September 13, as part of the acquisition of the company by Elon Musk. This is revealed by a document filed on July 26 with the Securities and Exchange Commission (SEC), the regulator of American financial markets. The consultation will be held a few days before the opening of the trial between the billionaire and the social network.
Twitter shareholders have their say
Parag Agrawal, CEO of Twitter, and Bret Taylor, chairman of the company’s board of directors, invited their shareholders to a “special meeting” in September. According to DRY, it will take place by videoconference. During this, the shareholders will have to decide whether they wish to continue the procedure for the takeover of Twitter by Elon Musk. The CEO of Tesla announced at the end of April his desire to buy the social network for 44 billion dollars. His proposal had been validated by the group’s board of directors and an agreement for the takeover of Twitter at 54.20 dollars per share had been signed.
At the beginning of July, the CEO of SpaceX reconsidered his decision. He accuses Twitter of not having provided him with the information necessary to assess the number of fake accounts on the platform. This data is important for Elon Musk because it would allow him to calculate the percentage of daily active users potentially affected by advertising. The billionaire has promised to more than double the social network’s advertising revenue by 2028.
In response to the withdrawal, the San Francisco-based company initiated legal proceedings citing an “invalid and unwarranted” decision. Bret Taylor tweeted that “ Twitter’s board has agreed to complete the transaction at the price and terms agreed with Mr. Musk and plans to take legal action to enforce the merger agreement. We are confident that we will prevail in the Delaware Court of Chancery “.
The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk and plans to pursue legal action to enforce the merger agreement. We are confident we will prevail in the Delaware Court of Chancery.
—Bret Taylor (@btaylor) July 8, 2022
On July 19, when Elon Musk demanded a hearing next February, the Delaware Court of Chancery, a court specializing in corporate disputes, ruled in favor of Twitter. The trial between the two parties should be held in October in order to prevent ” irreparable damage towards the company. To be continued…