A user hold a phone showing the Twitter logo
After a test with a smaller group, Twitter Circle may soon reach more users. Source: Deccan Herald

Twitter shareholder meeting to vote on Elon Musk deal on Sep 13

Social media giant, Twitter Inc, on Tuesday announced that it would be holding a meeting of its shareholders in the month of September.

According to Twitter, the shareholders meeting which is scheduled to happen on 13th of September would be primary considering voting on the proposed takeover of the social networking site by Chief Executive officer of Tesla Motors, Elon Musk.

In a letter to all stakeholders, San Francisco-based business enterprise said that the social media company is devoted to concluding the merger on price and terms accepted by Elon Musk. The letter also reminded the share owners about how critical their vote was in completing the takeover deal.

Elon Musk who had earlier proposed to buy the entire stake in Twitter Inc later backed out of the 44 billion dollar deal citing the failure of contractual obligation from the side of Twitter. Twitter then filed a lawsuit against the richest man in the world, citing Elon Musk cannot back out of such a deal according to his whims and fancies. The trial on the lawsuit is set to begin in October 2022 and the latest move by Twitter to make shareholders approve the original takeover deal is to gain an upper hand in the trial showing the support of its shareholders.

In the meeting on September 13th, shareholders would vote on various proposals related to the takeover deal by Elon Musk. One such proposal is to grant amicable compensation to certain officers at executive level. Such compensation is payable by the social networking company in relation to the Twitter – Elon Musk deal.

The shareholders are expected to vote in favour of the buyout, as they would receive 54.20 dollars on each share owned by them, Twitter Inc.’s Board of Directors of Twitter are also in favour of the deal.

A few months ago, Chief Executive Officer of the company, Parag Agarwal informed its employees that the firm is planning to halt hiring new employees and reviewing job offers which were sent as part of preparing for the takeover.

Elon Musk had earlier, in a video conference session, interacted with employees and workers of Twitter in which he answered several questions from them regarding his plans for the social media company and work from office rules.

In a piece of related news, attorneys representing Elon Musk made filings in the Delaware Chancery Court, accusing Twitter of  “slow-walking” on producing necessary pre-trial documents. These documents mentioned by the representative of Tesla CEO are very vital in proving whether Elon can be forced to conclude the merger deal.

Elon Musk also accused the social media company of taking advantage of uncertainty in the trial date, to squeeze the defendants.

Twitter has not made any comments so far regarding the filings made by lawyers of Elon Musk in court.