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Can't you buy it? Twitter majority votes to sell company to Musk

  • linda
  • 2022-09-13 17:43:57
  • 226 read
  people familiar with the matter said that a majority of Twitter shareholders voted to support the $44 billion...

  people familiar with the matter said that a majority of Twitter shareholders voted to support the $44 billion sale of the social networking company to the world's richest man Elon Musk (Elon Musk).

  The deadline for shareholders to vote on the deal was Tuesday, but enough investors had already voted by Monday night to make a firm result, people familiar with the matter said.

  Representatives for Twitter and Musk have not yet commented.

  Musk had previously informed Twitter that he would not proceed with the acquisition after Twitter misled him about the spam account and failed to inform Musk of a payment agreement the company had reached with an executive.

  Musk's offer for Twitter was $54.20 per share, which was signed in April. With Twitter currently trading around $41, that price looks expensive in the current environment. As such, Twitter shareholders are widely expected to back the deal after the stock market slumps.

  Twitter said earlier on Monday that it had not violated its acquisition agreement with Musk by paying a whistleblower. Until then, the world's richest man wants this as yet another excuse to call off the deal.

  Twitter lawyers argued that Musk’s excuse for canceling the deal was “invalid and false.”

  Musk's lawyers said last week that Twitter violated the acquisition agreement by not seeking Musk's consent before paying whistleblower Peiter Zatko and his lawyers $7.75 million. The agreement places limits on how long Twitter can make such payments.

  Zatek was fired as Twitter's security chief in January. He accused the social network last month of falsely claiming it had a solid security program and making misleading claims about defenses against hackers and fake accounts.

  The whistleblower will appear before the U.S. Senate Judiciary Committee on Tuesday to lay out the allegations.

  "Since Musk is now allowed to include Zatko's allegations in his testimony in the Delaware case, Wall Street will be watching tomorrow's hearing closely," Wedbush Securities analysts said in a research note.

  In addition, Twitter v. Musk is scheduled to hear in Delaware Chancery Court on October 17.

  Musk's lawyers have yet to comment.


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