American social media giant Twitter will hold an extraordinary shareholders' meeting online on the 13th.
Twitter is seeking shareholders' approval to execute the acquisition plan agreed with entrepreneur Elon Musk, but Mr. Musk unilaterally withdrew the acquisition and developed into a lawsuit with the company. The focus will be on how much support can be gathered.
Twitter will hold an extraordinary shareholders' meeting online on the 13th to discuss the approval or disapproval of the acquisition plan for a total of $ 44 billion, which was agreed with Elon Musk in April, and about 6 trillion yen in Japanese yen.
Under the deal Twitter reached with Musk, shareholders would be entitled to $54.20 per share in cash if the deal is approved.
That's well above Twitter's current share price, and Twitter's board has called on shareholders to vote in favor of the proposal in their best interest, seeking approval for the proposed acquisition.
This is because if the acquisition agreement, which can be said to be good conditions for shareholders, cannot be executed, the company may be sued for damages from the shareholders.
Approval of the acquisition requires a majority of approval at the shareholders' meeting, and the focus is on how much support can be gathered while Mr. Mask unilaterally withdraws the acquisition plan and develops into a lawsuit with the company.
Acquisition history
On April 14th, it was revealed that American entrepreneur Elon Musk had made an acquisition offer to social media giant Twitter.
Musk has surprised the world with a 100% stake in Twitter for $54.20 per share, for a total of more than $43 billion.
Twitter initially tried to block the acquisition, but there was no prospect of a support destination with conditions that exceeded Mr. Musk's proposal, and on the 25th of the same month, it turned around and accepted the proposal.
The total acquisition price was eventually $44 billion, and a schedule was also shown for Mr. Musk to acquire 100% of his shares and go private, and to complete the acquisition procedure this year.
However, on May 13, the month following the agreement, Mr. Musk will temporarily suspend the acquisition process.
On June 7, he suggested that the acquisition would be canceled because the company did not provide enough information to confirm the accuracy of the company's explanation that the number of fake Twitter accounts was less than 5%. .
In the end, the gap between the two sides' claims on this issue was not resolved, and on July 8, Mr. Musk notified Twitter of the withdrawal of the acquisition agreement.
Twitter has filed a lawsuit in a court in the eastern state of Delaware, claiming that the withdrawal is invalid, and seeking to execute the acquisition in accordance with the agreement, and the hearing is scheduled to take place in October, and the future of the acquisition is uncertain. .
US Congress Calls Former Executives to Whistleblower Allegations of Fraud
On the 13th, when Twitter's extraordinary shareholder meeting is scheduled, the U.S. Senate Judiciary Committee will hold a public hearing inviting Peter Zatko, the former executive who whistleblowered allegations of fraud at Twitter.
Mr. Zatko was the person who was dismissed as Twitter's security officer this year, and in July, he submitted an indictment to the US Securities and Exchange Commission, etc., saying that Twitter's security problems were being concealed. .
In addition to sloppy data management within the company, he claims that the company deliberately underestimated the percentage of fake accounts that were not real, thus making the number of users appear higher.
Entrepreneur Elon Musk has withdrawn his agreement to acquire Twitter, questioning the company's explanation that the number of fake Twitter accounts is less than 5%.
The company denies Mr. Zatko's allegations, but if Mr. Zatko reveals important facts at the public hearing, there is a risk that future trials will be affected.