After Elon Musk’s threat to cancel his takeover of Twitter, the social network draws its new weapon: its investors. In a letter addressed to them, the company calls on them to vote in majority for the transaction at the next meeting. If the yes wins, the billionaire will have far fewer exits and could be forced to finalize the transaction.
Elon Musk vs Twitter, episode 4856. So relations deteriorate a little more every day between the billionaire and the company, each has its own technique to bend the other. On the one hand, the richest man in the world is trying at all costs to lower the purchase price by brandishing the argument of the number of bots on the platform, which he considers to be tampered with by the latter. On the other, Twitter is trying somehow to maintain temperate discussions.
But it seems that the firm has had enough of the escapades of its potential buyer. Indeed, this one yesterday arrested the American authorities to help him to carry out his investigation on this famous question of false accounts. Joke or not is yet to be determined, but clearly Twitter took him at his word. Earlier this week, the company’s management, consisting of its CEO Parag Agrawal and its chairman of the board Bret Taylor, sent a letter to its investors with a very specific purpose.
Related: Elon Musk Would Become Temporary CEO of Twitter After Takeover
Twitter wants to force the hand of Elon Musk
In this letter, Twitter claims to have “determined that the merger agreement is desirable and that the merger and other transactions contemplated by the merger agreement are fair, desirable and in the best interests of Twitter and its shareholders”. Therefore, the company calls on all its investors to vote in favor of the takeover at the next general meeting. Thanks to their agreement, Elon Musk will see his room for maneuver drastically reduced.
Because the billionaire is committed. If he now tries at all costs to lower the buyback price, he won’t be able to back out as he sees fit – although it’s arguable that he won’t have too much trouble finding the billion dollars. compensation provided for this purpose in the assignment contract. Twitter, for its part, knows that it will not find a better offer than that of the businessman. While she wanted to counter her offer by all means a few weeks ago, the firm is now trying to force her hand.
Source : DRY