Twitter shareholders approve $44 billion Elon Musk buyout
Twitter denied breaking any of the terms of its sale to Musk in regards to its payment to the whistleblower and maintained that Musk’s arguments were “invalid and unjust.” Twitter shareholders approved the sale, and the company contests the breach of the whistleblower payment that the deal entails.
The $44 billion sale of the social media corporation to Elon Musk was approved by the majority of Twitter Inc.’s shareholders, setting the stage for the October trial in the Delaware Courts. According to Reuters, which cited its sources for the information, a sufficient number of shareholders had already cast their votes by the evening of Monday, despite the fact that the deadline for the shareholder vote on the acquisition was Tuesday.
Musk had withdrawn from the agreement with Twitter, claiming that he had been misled about the platform’s spam accounts and that he had been unaware of a pay agreement that the company had signed with one of its senior employees. Musk had withdrawn from the agreement after it had already been signed. After a drop in the stock market in April, which made Musk’s April proposal for $54.20 per share for Twitter appear pricey in light of the present economic context, shareholder approval was expected to be forthcoming. The price of a share of Twitter is approximately $41 at the moment.
The next day, on Monday, Twitter announced that it had changed its stance on the whistleblower reward and claimed that it had not violated any of the terms of its acquisition by Musk. Twitter’s legal team made it clear that Musk’s reasons for wanting to get out of the contract were “invalid and illegal,” and that they disagreed with those reasons.
The richest man on the planet made yet another effort to circumvent the deal just the week before last. According to the counsel for Musk, because Twitter did not acquire Musk’s consent before paying whistleblower Peiter Zatko $7.75 million, Twitter violated the merger agreement, which places limitations on when it may make such payments. The individual who blew the whistle will present the allegations to the Judiciary Committee of the United States Senate on Tuesday.
According to a note from Wedbush analysts, Wall Street will be eagerly monitoring the hearing that will take place tomorrow because the Musk camp is now permitted to incorporate the Zatko assertions into its case for Delaware. This news has caused the hearing to receive increased attention from Wall Street. The trial between Twitter and Musk is scheduled to begin on October 17th.