During Wednesday’s annual meeting, Twitter will have to contend with shareholders who are sceptical about the social media company’s ability to complete its deal to be acquired by billionaire Elon Musk at the agreed-upon price. This uncertainty stems from the fact that the deal to be acquired by Musk has not yet been finalised.
On May 13, the chief executive of Tesla sent a tweet stating that the $44 billion (about Rs. 3,41,300 crore) acquisition was “temporarily on hold” while he investigated the percentage of fraudulent accounts on Twitter.
The business said the previous week that it would continue to honour the transaction at the previously negotiated pricing. Twitter’s shares ended on Tuesday at $35.76 (about Rs. 2,800), which is a discount of 34 percent compared to the $54.20 (approximately Rs. 4,200) per share purchase price. However, investors do not appear to be persuaded by this argument.
Despite the fact that a question-and-answer session is scheduled to take place during the virtual annual meeting on Wednesday, a Twitter spokeswoman has stated that the firm would not answer any queries regarding deals.
It is scheduled that investors in Twitter will vote on five shareholder recommendations, all of which are opposed by management. These stockholder proposals include urging the firm to provide a report on its influence on civil rights, as well as another report on its lobbying operations.
According to Donna Hitscherich, a professor of finance at Columbia Business School, the meeting will not be “especially significant” to the deal that will be bought by Musk.
She stated that even if the shareholders voted in favour of one of the plans, the vote would not be binding.
