Twitter shareholders to vote on Musk's takeover on September 13
What's the story
It is time for a very crucial shareholder meeting at Twitter. On September 13, shareholders will vote on Elon Musk's $44 billion takeover proposal, said the company in an SEC filing. The meeting will start at 10:30pm IST and will be made live. The microblogging platform's directors urged shareholders to vote in favor of the deal. Musk had withdrawn his bid on July 9.
Context
Why does this story matter?
Twitter's shareholders have forever been watching the Musk-Twitter saga from the sideline. They will get their chance to be part of the story in September when they vote on the merger. The vote will have no consequence on the current status of the deal as it is in the court. However, a favorable vote will certainly strengthen Twitter's position in the trial.
Meeting
Shareholders will be able to vote remotely
In the September 13 meeting, Twitter's shareholders will vote on whether to go through with Musk's $44 billion takeover bid or not. They will also be asked to vote on a proposal to approve compensation payable by Twitter to certain executives related to the acquisition, said Tuesday's filing. Shareholders will be able to attend the meeting online and vote remotely.
Directors
Twitter's directors urged shareholders to vote in favor
Twitter's board of directors has always strongly urged the shareholders to vote in favor of the deal. The directors showed the same urgency in the SEC filing as well. "We are committed to closing the merger on the price and terms agreed upon with Mr. Musk. Your vote at the special meeting is critical to our ability to complete the merger," said the company.
Story till now
Twitter has already filed a lawsuit against Musk
To recall, Musk had agreed to buy Twitter at $54.20/share in April for a total of $44 billion. The deal's topsy-turvy journey since then concluded with Musk terminating the deal citing "misleading" statements over bot count issue. The microblogging platform then sued Musk in the Delaware Court of Chancery to force Musk to complete the acquisition. The court has agreed to fast-track proceedings.
Quarterly report
Twitter posted $270 million net loss last quarter
Amid the Musk saga, Twitter released its Q2 report. It posted $1.18 billion in revenue, which is 1% down YoY and 2% less than the last quarter. The company also posted a net loss of $270 million in contrast to the $66 profit million a year ago. Among other things, it blamed the complications of the Musk deal for poor performance in the quarter.