The saga of the potential Elon Musk takeover of Twitter continues. Musk recently warned in a tweet that he will not move forward with the deal unless the company can show proof that fewer than 5% of accounts are fake or spam accounts. “My offer was based on Twitter’s SEC filings being accurate,” Musk tweeted.
Musk has offered to pay $44 billion to buy Twitter and take the social media company private.
In the meantime, Twitter has filed a preliminary proxy statement in preparation for a shareholder meeting to vote on Musk’s acquisition.
The proxy statement acknowledges that if the merger does not go through, the price of Twitter’s common stock “may decline significantly.” It also highlights some background on discussions with Musk, including a dialogue between Musk and former Twitter CEO Jack Dorsey on the day Musk was appointed to the Twitter board. (Musk later abandoned his plan to join the board.) During that discussion, Dorsey also shared his personal view that "Twitter would be better able to focus on execution as a private company.”
Twitter’s shares have dropped over 30% since Musk made his offer to take over the company.