By
Bena Ilyas
April 23rd, 2024
Twitter is planning a shareholder vote soon to approve the compensation payable to execs in connection with Musk’s buyout.
Twitter (NYSE: TWTR) announced on Tuesday that it intends to conduct a shareholder meeting on September 13th to vote on Elon Musk’s $44 billion takeover bid. This comes after Musk’s decision earlier this month to walk away from the acquisition deal. Twitter disclosed that shareholders will vote on a proposal to approve the compensation payable by the social media giant to certain executives.
According to Twitter in a filing, the amount payable to the executive officers is in connection with the buyout. If the buyout deal is completed, Twitter shareholders become entitled to $54.20 in cash for each common share owned. In addition, the microblogging platform also added that its board strongly supports the takeover.
Twitter Shareholder Vote Comes Ahead of October Legal Showdown with Musk
Twitter’s shareholder meeting looks set to occur as the company also prepares to take Musk to court for abandoning the deal. A judge at the Delaware Court of Chancery has agreed to expedite the trial between the social media giant and the Tesla CEO. Twitter plans to compel Musk to honor the terms of the previously stated merger agreement. The filing issued by the major microblogging platform regarding the shareholder meeting read:
“We are committed to closing the merger on the price and terms agreed upon with Mr. Musk. Your vote at the special meeting is critical to our ability to complete the merger.”
Back in April, Musk had reached an agreement with Twitter to acquire the social media giant for $44 billion, or $54.20 per share. However, Musk grew increasingly discontented with Twitter’s given bots data as the deal progressed. The billionaire businessman wanted to know exactly how many Twitter accounts were bots or spam accounts. Although the social media giant claims the number is less than 5%, Musk believes the figure is unverifiable. In addition, the Tesla CEO also stated that Twitter refused to provide his team with satisfactory data regarding the spam accounts. Describing the social media company as reluctant to cooperate, Musk eventually decided to back out of the deal.
Following news that Musk had pulled out of the Twitter acquisition deal, shares of the social media company tumbled. This was one of the precipitating factors that prompted Twitter to seek legal action against Musk. Furthermore, according to the terms of the original deal, Musk is required to pay a breakup fee of $1 billion.
Twitter Q2 Outlook on Hirings
Meanwhile, Twitter has revealed it is slowing down staff hiring for the second quarter. In addition, the company also stated that it was being more selective in filling its job roles. For instance, in May, Twitter CEO Parag Agrawal informed employees that the company would review all existing job offers and pause most hiring. These measures taken are all in a bid to cut costs amid prevailing harsh market conditions