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Twitter freezes employees' exchange accounts pending $44 billion deal with Musk

On October 18, 2022, the media reported that Twitter had blocked the exchange accounts of employees in anticipation of closing a deal with Musk for $44 billion. The company expects this stage in its activities to be completed by October 28.

Company media sources confirmed that employees are now unable to access their Twitter shares from their work account. they are also prohibited from trading in shares, including those received as bonuses through the share reward program.

The company's page says the restriction was in place "in anticipation of the closing of the acquisition of Twitter by an entity controlled by Musk."

The experts explained that this equity freeze allows the company to complete a final reconciliation of employee accounts before the acquisition closes. A Twitter spokesperson declined to comment to the media on the matter. Journalists believe the company's move is a signal that Twitter is moving forward with the proposed deal and is aware of Musk's next steps. Twitter shares after the publication of this information rose by 1.9%.

Previously, experts believed that before October 19, Musk and Twitter would still sign an agreement to withdraw the lawsuit in court and close the deal to buy the social network.

On April 25, Twitter announced that it had accepted Musk's offer to sell the company to a private individual for $44 billion.

On May 13, Musk announced the suspension of the deal to buy Twitter due to the large number of bots on the platform.

On July 8, Musk canceled the deal to buy microblogging service Twitter.

On July 12, Twitter announced that it had filed a complaint with the Delaware Court of Chancery against Musk. The main reason for filing a lawsuit is the need to force Musk to fulfill his legal obligations and force him to complete the merger operation.

On September 13, at the annual meeting, Twitter shareholders approved the deal to sell the social network to Musk.

On October 4, Musk withdrew his refusal to buy the social network and again agreed to buy Twitter for $44 billion.

Currently, Twitter's trial against Musk is suspended until October 28th. Until that time, Musk promised to buy the social network a second time, but he had problems financing the deal.

Twitter freezes employees' exchange accounts pending $44 billion deal with Musk