Industry

Twitter to hold annual meeting amid uncertainty over Elon Musk’s takeover

An image of Tesla CEO Elon Musk is seen on a smartphone placed on printed Twitter logos in this picture illustration taken April 28.

An image of Tesla CEO Elon Musk is seen on a smartphone placed on printed Twitter logos in this picture illustration taken April 28. | Photo Credit: Reuters

Twitter Inc will face skeptical shareholders on May 25 during its annual meeting, as doubt remains over whether the social media company will complete its deal to be acquired by billionaire Elon Musk at the agreed-upon price.

The Tesla chief executive tweeted on May 13 that the $44 billion acquisition was “temporarily on hold” while he sought more information about the proportion of fake accounts on Twitter.

The company said last week it remained committed to the deal at the agreed price. However, investors have appeared unconvinced, as Twitter’s shares closed on May 24 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 May 25, a Twitter spokesperson said the company will not answer deal-related questions.

Twitter investors are set to vote on five stockholder proposals, all opposed by management, which include asking the company to produce a report on its impact on civil rights and another on its lobbying activities.

The meeting itself will not be “particularly relevant” to the agreement to be acquired by Mr. Musk, said Donna Hitscherich, a professor of finance at Columbia Business School.

Even if shareholders approve any of the proposals, it will be non-binding, she said.


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Printable version | Jun 16, 2022 4:40:48 pm | https://www.thehindu.com/business/Industry/twitter-to-hold-annual-meetingamid-uncertainty-over-elon-musks-takeover/article65459890.ece