Twitter Shareholders Advised to Approve Sale to Elon Musk by Proxy Advisory Firm ISS: Report

The proxy advisory firm also noted that there was very little resistance from shareholders to Elon Musk's Twitter takeover deal.

Written by David Delima | Updated: 31 August 2022 00:27 IST

Twitter Shareholders Advised to Approve Sale to Elon Musk by Proxy Advisory Firm ISS: Report

Photo Credit: Reuters

Twitter shareholders are expected to vote on Elon Musk's deal on September 13

Highlights

Twitter shareholders are yet to vote on Elon Musk's takeover deal
The deal to take over Twitter was reached in April
Elon Musk attempted to walk away from his Twitter takover deal in July

Twitter investors were advised by a proxy advisory firm to back Tesla CEO Elon Musk's bid to acquire the microblogging service next month, as per a report. Musk, who agreed to purchase Twitter for $44 billion (nearly Rs. 3,51,300) back in April, attempted to walk away from the deal in July, claiming that he was provided with misleading information related to the number of fake accounts on the platform. Twitter and Musk are set to face off in a US court in October.

Institutional Shareholder Services (ISS), a proxy advisory firm, has advised Twitter shareholders to vote to approve Musk's plan to purchase the company, according to a report by Reuters. The firm's recommedation comes two weeks before shareholders will vote on the takeover deal.

The ISS reportedly stated that a vote for the proposal was warranted, as the deal would provide the microblogging service with liquidity, while shareholders would gain value from the all-cash transaction. According to the report, ISS also noted that there was very little resistance to the takeover deal from shareholders, who are expected to vote on the deal on September 13.

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Musk agreed to purchase Twitter for $54.20 (roughly Rs. 4,300) per share back in April, but later informed Twitter that he did not intend to go through with the deal, prompting Twitter to move a US court to direct him to go through with the deal as per the agreement.

Elon Musk Asks Twitter to Scrap Takeover Deal Over Whistleblower Claims

Meanwhile Musk recently subpoenaed whistleblower Peiter Zatko, who recently raised shocking allegations on Twitter. The Tesla CEO is expected to ask Zatko, who formerly worked as Twitter's security chief, details of how the microblogging site measures spam accounts.

This week, we discuss Android 13 on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

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Further reading: Twitter, Elon Musk

David Delima

Email David Delima

As a writer on technology with Gadgets 360, David Delima is interested in open-source technology, cybersecurity, consumer privacy, and loves to read and write about how the Internet works. David can be contacted via email at DavidD@ndtv.com, on Twitter at @DxDavey, and Mastodon at mstdn.social/@delima. More