Twitter shareholders meet amid Elon Musk’s takeover drama

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Twitter’s regularly scheduled shareholder meeting on Wednesday did not include a vote on Tesla billionaire Elon Musk’s $44 billion bid for the social platform. That vote will take place at an as yet uncertain date in the future.

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CEO Parag Agarwal said at the outset that the executive would not answer any questions surrounding the proposal. Even one shareholder asking a question about what would happen to his shares if someone bought Twitter and took it private was shot down.

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If this happens, the shareholder will be paid the agreed purchase price for each share and the stock will be liquidated.

But the drama surrounding his proposal — almost all of it created by Musk himself — threatened to spill over into Wednesday’s proceedings. Shareholders who raised the motion for vote often used his name.

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A proposal by the New York State Common Retirement Fund called for a report on Twitter’s policies and procedures around political contributions using corporate funds. It passed in an early vote.

Two resolutions brought by conservative-leaning groups failed to garner enough votes to pass. One called for an audit of the company’s “impact on civil rights and non-discrimination” and “anti-racist” programs trying to establish “racial/social equity” as “deeply racist”. mentioned. Another sought more disclosure on the company’s lobbying activities.

Musk promised that taking over Twitter would rid the social media platform of its annoying “spam bots”. But he is arguing – without offering any evidence – that there may be too many of those automated accounts to push the deal.

Experts said last week that there is no point in a sharp turnaround by the world’s richest man, except to halt or renegotiate a deal that is becoming costly for him. The fact that the whole thing is going public — on Twitter, no less — only adds to the chaos that has stagnated in Musk’s bid before he could even make it.

Earlier in May, the business billionaire tweeted that the deal was “on hold” as he wanted to point out the number of spam and fake accounts on the social media platform, after claiming that Twitter’s own estimates were too low. .

Experts say Musk can’t put the unilateral deal on hold, though that hasn’t stopped him from acting like he can. If he walks away, he could be on the hook for a $1 billion breakup charge. Alternatively, Twitter could sue Musk to force him to pursue the deal, though experts agree that’s unlikely.

twitter TWTR share,
+3.31%
were up $1.09, or 3%, at $36.83 in afternoon trading on Wednesday. Musk’s offer is $54.20 per share.

Credit: www.marketwatch.com /

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