Twitter has scheduled a special meeting with shareholders to vote on Elon Musk’s $44 billion acquisition of the company despite the legal tensions between the two parties.
The social platform will hold the virtual meeting at 10 a.m. PST on Sept. 13, according to a Securities and Exchange Commission filing. It will continue to encourage shareholders to vote in support of the acquisition. Twitter’s board of directors is continuing to push for an affirmative vote while also suing Musk in hopes of forcing him to uphold his agreement to purchase the company.
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“At the special meeting, you will also be asked to consider and vote on a proposal to approve, on a non-binding, advisory basis, the compensation that will or may become payable by Twitter to its named executive officers in connection with the merger,” Twitter told shareholders, “and a proposal for the adjournment of the special meeting, from time to time, to a later date or dates, if necessary or appropriate, to solicit additional proxies if there are insufficient votes to adopt the merger agreement at the time of the special meeting.”
While Twitter initially expected its company to go private upon Musk’s agreement to acquire the company, the billionaire’s decision to terminate his agreement had a notable impact on its revenue. The social media platform took a 1% year-over-year hit to its revenue — or an increase of 2% on a constant currency basis. The miss came despite a reported increase in users year over year by 16.6%.
Musk terminated his agreement to acquire Twitter on July 8, alleging that Twitter had been deceptive about its number of spam bots. Twitter promptly responded by filing a lawsuit against Musk on July 12, hoping to force him to uphold the agreement. The two parties are scheduled to appear in October in the Delaware Court of Chancery.
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If Twitter wins its court case against Musk, he will be forced to purchase its stock at $54.20 a share. If Musk succeeds, he will be released from his contractual obligations and will have to pay a $1 billion termination fee, as established in the agreement. A settlement is possible between the two parties, but it would require additional negotiations.
