Twitter Submits Proxy Statement to SEC Urging Shareholders to Accept Offer

Twitter Submits Proxy Statement to SEC Urging Shareholders to Accept Offer
  • The board of directors recommends that all shareholders vote in favor of the agreement.
  • Elon’s offer of $54.20 is a significant premium above the current market price.

The Securities and Exchange Commission (SEC) has received a proxy statement from Twitter, requesting that shareholders approve Elon Musk’s $44 billion bid. Shareholders are urged to attend a special meeting to discuss the $44 billion purchase of Twitter. According to the proxy statement submitted with the Securities and Exchange Commission on Tuesday, the board of directors recommends that all shareholders vote in favor of the agreement.

Significant Premium Above Current Price

According to the company’s board of directors, this purchase arrangement is in the best interests of Twitter and its shareholders. The board recommends that shareholders vote “FOR” the merger agreement, executive compensation, and postponement of the special meeting because of a lack of votes.

According to the proxy statement:

“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; and a proposal for the adjournment of the special meeting.”

Shareholders are expected to vote on Elon Musk’s company takeover in July or August. As of this writing, Twitter’s stock price is $38.43 per share. Elon’s offer of $54.20 is a significant premium above the current market price of the product. As a result, stockholders stand to gain from the agreement.

There were concerns about Elon Musk’s purchase of Twitter since Musk claimed the social media platform was slow in giving spam account information. The agreement seems to be moving forward, dispelling fears that it will fall through.

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