Twitter executives all agree that shareholders should support the deal.
A recent document from Twitter says that Twitter executives recommend that shareholders approve selling the company to Elon Musk for $44 billion. Elon Musk, the CEO of Tesla and SpaceX, made a deal to buy Twitter in April this year.
In the document, there was also a letter to shareholders. The letter says that Twitter executives decided that completing the deal is a good idea and it seems fair. They said the deal is “in the best interests of Twitter and its stockholders.”
The letter does not say when the vote to approve the deal will happen. Bloomberg reports that the vote could happen at the end of July or the beginning of August. Musk offered to buy Twitter when the share price was $54.20. The share price is much lower now, but Musk still wants to go forward with the deal. In a meeting with Twitter employees last week, he also said that he wants Twitter to have 1 billion users.
Twitter did not give more information on this topic.
The recommendation from the Twitter executives to approve the deal wasn’t a surprise. They had already approved the deal, but there were unusual events after that. This recommendation is the next step in the process.
At the beginning of the deal, Musk said that Twitter has to prove that less than 5% of Twitter users are bots. If Twitter doesn’t prove that, he won’t buy it. Musk also said that Twitter didn’t want to talk about bots, but eventually gave him the information.
In an interview with Bloomberg, Musk said that the bots and the approval from shareholders are two things that have to be resolved to finish the deal. Another thing is if Musk and Twitter can agree on how he will pay for the company.
Musk also says that he is OK with renegotiating the deal and that maybe a lower price is possible. Twitter indicated that it does not want to renegotiate.
In April, the co-founder and former CEO of Twitter, Jack Dorsey, said that he supported the deal and he trusted Musk.
Vocabulary
- Executive – a person with high power at a company, a board member, a decision maker at a large company
- Shareholder – a person who owns shares/stocks in a company, a person who invested money in a company
- Deal – a business agreement, a contract, an understanding, a solution
- in the best interests of – it’s good for, it will help
- Vote – when a group of people choose an option they like best; to say your preference
- Share – a small piece of a company that people can buy; stock
- go forward – continue, move forward, advance
- Prove – confirm, verify, show, certify
- Bot – a robot on the internet not controlled by people, fake accounts on the internet, AI on the internet
- Resolved – find a solution, fix, settle, agree, clarify
- Renegotiate – to negotiate again, to change the agreement, to change the deal
- Indicate – to say, to show, to mention, to declare, to signal, to suggest
- Former – ex-, previous, last, earlier, in the past
Original story from CNET below:
