Twitter Locked Stock Accounts of Employees Ahead of Soon Deal
- Oct 20, 2022
Twitter has locked the stock accounts of its employees in anticipation of a deal, sources familiar with the matter said. The move comes as the social media company is in talks to sell itself to Elon Musk, the Bloomberg News sources said.
The stock account lockup is not unusual for companies undergoing a sale or merger said the sources, who asked not to be named because the matter is confidential. The account lockup prevents employees from selling their shares in the company during the negotiation process.
The move signals that a deal between Twitter and Tesla is close, the sources said. Twitter has been under pressure to find a buyer after years of stagnant user growth. Twitter employees would likely receive a mix of cash and stock if the company is sold to Tesla, the sources said.
Twitter has been under pressure to find a buyer after years of stagnation. The company has been exploring a sale for weeks and has held talks with multiple suitors.
Tesla is seen as a dark horse in the bidding process, but Musk has expressed interest in acquiring the social media company. Twitter has more than 24 million employees. If a deal with Tesla goes through, it would be one of the largest tech acquisitions ever.
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