What you need to know
- Twitter's shareholders will take an advisory vote on the Elon Musk acquisition.
- Twitter's next virtual shareholder meeting is set for May 25.
- The board is recommending that they vote in favor, and the company says it is still committed to the acquisition.
A new filing from Twitter has confirmed that shareholders will be asked to vote on the proposed acquisition of the company by Elon Musk, with the board recommending they vote in favor of the measure.
A filing Tuesday states:
You are cordially invited to attend a special meeting of stockholders (which we refer to, together with any adjournment, postponement or other delay thereof, as the "special meeting") of Twitter, Inc. (which we refer to as "Twitter"). The special meeting will be held on [•], 2022, at [•], Pacific time. You may attend the special meeting via a live interactive webcast at http://www.virtualshareholdermeeting.com/TWTR2022SM. You will be able to listen to the special meeting live and vote online. We believe that a virtual meeting provides expanded access, improved communication and cost savings for our stockholders and Twitter.
While no date or time is listed in the filing, Twitter has a shareholder meeting set for May 25, 2022, at 10 am PDT. The filing notes that Twitter's board of directors is unanimously recommending that they vote "for" the adoption of the merger agreement and Musks' takeover.
In a statement, the company said "Twitter is committed to completing the transaction on the agreed price and terms as promptly as practicable."
According to the filing, Twitter believes it is facing risks in several areas. Namely, the size and financial resources of the company compared to its competitors, changes in the industry, and " substantial risks to achieving Twitter's business plan." The filing says Twitter has considered Twitter's number of monetizable daily users and ongoing pressures such as the conflict in Ukraine, inflation, and more.
A few hours ago, Elon Musk stated that the acquisition could not move forward until he had received confirmation that fewer than 5% of accounts on the platform were spam or bots after it emerged that there was uncertainty about the figure and that the actual number could be much higher. Twitter warns in the filing that if the merger is not completed, the share price of its stock "may decline significantly."
