Twitter to Hold Shareholder Vote on Musk's Takeover Offer

Twitter announced on Tuesday that it plans to hold a vote on the acquisition bid by Elon Musk on September 13th.

A Big Vote Coming Up

The meeting will commence at 10:00 AM PT, and shareholders will be able to attend through a webcast. They will watch the meeting live and then vote.

The company’s board of directors has previously urged shareholders to approve the sale to the Tesla owner. In Tuesday’s letter, the company told its shareholders that their vote is critical for the merger to be completed.

“We are committed to closing the merger on the price and terms agreed upon with Mr. Musk," the letter said.

The Background

In April, Musk cemented the $44 billion deal that would see him acquire the platform. He then put the takeover deal on hold, suspecting that spam bots make up over 20% of all Twitter users. Musk announced earlier in July that he is terminating the takeover deal.

“You can't pay the same price for something that is much worse than they claimed,” he said.

Twitter then sued Musk, announcing its plans to force him to go through with the agreed purchase.

The drama over the merger immediately affected the company’s share price, initially dropping by 8%.

Cutting Costs

Separately, Twitter also announced on Tuesday that it already started slowing down the hiring process in the second quarter and became more selective with filling roles. The moves come as the social media giant needs to manage its cost structure “in light of the current macroeconomic environment.”