Shareholders of Twitter will vote on Musk’s purchase in September
Twitter on Tuesday encouraged investors to support Elon Musk‘s $44 billion acquisition of the online platform, calling for a vote on the merger on September 13.
The company and the erratic Tesla CEO are engaged in a legal dispute over his attempt to renege on the agreement, and a court has scheduled a trial to start in October.
Twitter‘s CEO Parag Agrawal and board chairman Bret Taylor stated as much in a letter to investors that was filed with the US Securities and Exchange Commission. “Twitter believes that Mr. Musk’s purported termination is invalid and wrongful, and the merger agreement remains in effect,” the letter to investors stated.
“Your vote at the special meeting is critical to our ability to complete the merger.”
It has been confirmed that Twitter shareholders can participate in the meeting online and cast their votes from a distance.
The board of Twitter unanimously recommended that shareholders approve Musk’s plan to acquire the firm for $54.20 per share in accordance with the terms of an April agreement.
The Tuesday letter stated, “We are committed to finalizing the transaction on the price and terms agreed upon with Mr. Musk.”
Tuesday’s official trading day saw Twitter shares end at $39.34.
Last week, the corporation attributed its weak quarterly earnings to “headwinds,” particularly the uncertainty brought on by Musk’s erratic takeover bid.
The social media behemoth revealed that there are now 237.8 million “monetizable” daily active users, or those who can see advertisements, up 8.8 million from the previous quarter.
Twitter’s statistics covered the time period that ended in June; therefore, they do not take into consideration Musk’s attempt to “terminate” the agreement in July on the grounds that the network was secretive about its number of false accounts.
The social media platform responded that Musk couldn’t back out now because he had already agreed to the arrangement.
A Delaware court in the east of the United States authorized a speedy trial to determine whether to order the billionaire to finish the takeover.
Billions of dollars are at risk, but Twitter’s existence is also in jeopardy due to Musk’s absolutist attitude that the social media platform should permit any legal speech, which has raised concerns that it may be used to encourage violence.