Twitter Sets Special Meeting for Shareholder Vote on Sale to Elon Musk
By Movieguide® Contributor
Twitter announced that they would host a special meeting with shareholders on September 13, where they can vote on the social media company’s sale to Elon Musk, recommending stockholders vote in favor of the transaction.
This meeting will come a month before the October Delaware Chancery Court trial, where the company hopes to force Musk to follow through on the $44 billion deal.
As Movieguide® reported, “The Tesla and SpaceX CEO initially planned to move forward with a $44 billion deal to acquire Twitter. However, Musk turned his back on the company after he alleged the company breached ‘multiple provisions’ from their initial contract. However, Twitter intends to proceed with the deal and ensure it in a court of law.”
Twitter and Musk initially struck the acquisitions deal on April 25. However, because Twitter did not fully disclose the number of bot and spam accounts, Musk terminated his agreement in July, causing Twitter to sue him.
In a recent SEC filing, Twitter recommended that shareholders vote for Musk to follow through on the agreement.
Deadline reports that, according to the filing, “If the merger is completed, you [stockholders] will be entitled to receive $54.20 in cash, without interest and subject to any applicable withholding taxes, for each share of our common stock that you own.”
“That’s a premium of 38% to Twitter’s closing share price on April 1—the last full trading day before Musk disclosed his 9% stake,” Deadline continues.
While Twitter’s future remains uncertain, the company will continue to pursue the deal with Musk.
Movieguide® previously reported on Musk’s termination of his deal with Twitter:
Twitter also claimed that Musk’s comments directed at Twitter and Twitter CEO Parag Agrawal resulted in the company’s low value.
Law experts can’t help but point out the novelty of Twitter’s demands.
“There’s a real paradox at the heart of this litigation,” Todd Henderson, professor at the University of Chicago Law School, said of the looming case.
Greg Varallo, a partner at law firm Bernstein Litowitz Berger & Grossmann, added: “It’s a little weird to have parties that don’t want to get married and say, ‘No you have to get married.’”
The Hollywood Reporter notes that it could be difficult for Twitter to come out as the winner in this case, even if Musk is forced to follow-through with his purchase:
“There’s also the question of enforcement if Musk is forced to go through with purchasing Twitter. If he is, Musk would have to go back to the entities financing the deal to make sure they’re still on board. If they’re not, he’d then have to sue them in New York court to make them follow through with their obligations. In this scenario, Musk may have a conflict of interest because he’d be motivated to not have the deal go through.
“He can tell his lawyers, ‘Look, do a [bad] job — we don’t want to win this case,’” Henderson says. “All the while, Twitter is in limbo.”
The aftermath of a ruling ordering Musk to consummate the deal, Henderson says, raises concerns of collateral litigation and slow-walking the financing. The court is unlikely to hold Musk in contempt if it at least appears as if he’s trying to follow through with financing the purchase.
In the short term, Twitter will likely move to fast-track the case. Trial may be scheduled as soon as October.”
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Now more than ever we’re bombarded by darkness in media, movies, and TV. Movieguide® has fought back for almost 40 years, working within Hollywood to propel uplifting and positive content. We’re proud to say we’ve collaborated with some of the top industry players to influence and redeem entertainment for Jesus. Still, the most influential person in Hollywood is you. The viewer.
What you listen to, watch, and read has power. Movieguide® wants to give you the resources to empower the good and the beautiful. But we can’t do it alone. We need your support.
You can make a difference with as little as $7. It takes only a moment. If you can, consider supporting our ministry with a monthly gift. Thank you.
Movieguide® is a 501c3 and all donations are tax deductible.
