Republicans on the House Judiciary Committee have issued a preservation notice to Twitter asking the social media giant's board to hold onto all records related to Elon Musk'sMusk's takeover offer.
The letter states that decisions regarding Twitter's future governance will be consequential for public discourse in the United States and could give rise to renewed efforts to legislate in furtherance of preserving free expression online. The Board's reactions to Elon Musk'sMusk's offer to purchase Twitter, and outsider opposition to Musk's role in Twitter's future are concerning. The board members of Twitter have fiduciary duties to the company's shareholders. These duties apply despite how many corporations leaders are increasingly pursuing progressive policy goals that are not aligned with shareholder interests. The request includes all electronic messages sent through official and personal accounts or devices, including through encryption software.
The preservation notice should be used as an instruction to take all reasonable steps to prevent the destruction or alteration of all documents, communications, and other information, including electronic information and metadata, that are or may be potentially responsive to the congressional inquiry, the letter adds.
The letter was signed by 18 House Republicans, including House Judiciary Committee ranking member Jim Jordan. Musk was a self-described free-speech absolutist on April 4. He has questioned whether the platform adheres to free speech principles, and has been a harsh critic of the platform and its chief executive, Parag Agrawal.
Musk was initially unable to own more than 14.9% of Twitter's stock while serving on the board or for 90 days after joining the board. Musk's board term would have expired at Twitter's 2024 annual meeting.
Musk then made a $54.20 per share offer to buy Twitter and take it private, saying it was his best and final one. After the $43 billion bid, Twitter adopted a limited duration shareholder rights plan that prevents Musk or any other entity from acquiring 15% or more of Twitter's outstanding common stock in a transaction not approved by the board. In a Securities and Exchange Commission filing on Thursday, Musk said he is exploring whether to start a tender offer to acquire all outstanding shares of Twitter's common stock, in response to the lack of response to his offer.
Musk stated that he has received commitments of around $46.5 billion to help finance a potential deal, including around $21 billion in equity financing and about $25.5 billion in debt financing through Morgan Stanley Senior funding and other firms, including Bank of America, Mizuho Bank, Barclays, MUFG, Soci t G n rale and BNP Paribas.
The filing states that Musk has not decided on whether he will make a tender offer or not, and that he may take other steps to further his proposal.
On Thursday, Twitter told FOX Business that it was in receipt of Musk's updated, nonbinding proposal, and that it is committed to conducting a thorough, thorough and deliberate review to determine the course of action it believes is in the best interest of the Company and all Twitter stockholders.