Twitter froze the equity awards accounts for employees on Monday as the deadline to seal a deal with Elon Musk approaches.
The social media company updated its employee frequently asked questions (FAQ) page this week to alert staff that they would not be able to access or trade shares from the Equity Award Centre. 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 sources.
“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, the sources said. A number of staff have been seeking other jobs and plan to resign once the stock vests, they said.
A Twitter representative declined to comment.
The move is a signal that Twitter is marching ahead with the proposed deal. Twitter’s shares jumped 1.9 per cent after the news.
Mr Musk and Twitter are nearing an October 28 deadline to finalise a $44 billion sale that was first announced in April.
Mr Musk previously tried to walk away from his offer, prompting Twitter to sue in an effort to consummate the agreement. A judge delayed a planned trial, originally scheduled for this week, to give the two sides more time to finalise the details.
Employees have been waiting anxiously for the deal to close, and many are worried about the possibility of job cuts. On Blind, an anonymous app for employees to chat with one another, some have started to share tips with colleagues on how to prepare for lay-offs.
Updated: October 19, 2022, 6:54 AM