Twitter is locking staff stock accounts, presumably in preparation for the sale of the platform to Elon Musk. The parties are approaching the October 28 deadline to close the deal.
This week, Twitter updated the FAQ page for employees to warn them that they would not be able to access or trade shares from the Equity Award Center, according to Bloomberg. The page said the change was done “in anticipation of the closing of the pending acquisition of Twitter by an entity controlled by Elon Musk,” according to two people familiar with the change.
“This freeze allows Schwab to perform final reconciliation of employee accounts prior to close of the acquisition,” the update reads. Restricted stock units for a number of workers are due to vest early next month, sources said. A number of staff have been seeking other jobs and plan to resign once the stock vests.
The move is a signal that the deal to buy the platform between Twitter and Musk is moving forward. The deadline for closing the deal is October 28, which was set by the judge at the request of the buyer. The judge has postponed the scheduled trial, originally scheduled for October 17, to give both sides more time to work out the details.
According to the anonymous app Blind, in which Twitter employees share their thoughts, they are looking forward to closing the deal. Some have begun to share information on how to prepare for layoffs that are expected to take place after the deal closes.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.