Twitter faces uncertainty over Musk deal to buy platform
Twitter Inc. will face skeptical shareholders during its annual meeting on Wednesday, as doubts remain over whether the social media company will complete its deal to be acquired by billionaire Elon Musk at a price agreed.
- Reuters
- Last Update:May 25, 2022, 17:49 IST
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(Reuters) – Twitter Inc will face skeptical shareholders during its annual meeting on Wednesday, as doubts remain whether the social media company will complete its deal to be acquired at a price agreed by billionaire Elon Musk.
Tesla’s chief executive tweeted on May 13 that the $44 billion acquisition was “temporarily halted,” while he asked for more information on the proportion of fake accounts on Twitter.
The company said last week it was committed to the deal at the agreed price. However, investors appeared unconvinced, as Twitter shares closed Tuesday at $35.76, representing a 34% discount to the $54.20 per share deal price.
While the virtual annual meeting will include a question-and-answer session on Wednesday, a Twitter spokesperson said the company would not respond to questions related to the deal.
Twitter investors are set to vote on five shareholder proposals, all opposed by management, asking the company to produce a report on its impact on civil rights and another on its lobbying activities.
Donna Hitscherich, professor of finance at Columbia, said the meeting would not be “particularly relevant” to the agreement acquired by Musk. Business school.
He added that if the shareholders approve any of the proposals, it will be non-binding.
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