Majority of Twitter shareholders voted in favor of sale of Twitter to Elon Musk, says report


New Delhi: A majority of Twitter Inc. shareholders voted in favor of selling the social media business to Elon Musk for $44 billion, according to people familiar with the results speaking Monday.

The deadline for a shareholder vote on the merger is Tuesday, but according to sources, enough investors had cast their vote by Monday night to secure the result.

Ahead of the formal announcement, sources asked to remain anonymous. Requests for feedback from Twitter and Musk’s team were not immediately considered.

Musk informed Twitter that he would not proceed with the acquisition, claiming that the company had duped him about the platform’s spam accounts and that it had informed him about the salary agreement he had made with one of his senior employees. did not do. The two sides are expected to face-off in court next month.

Musk’s $54.20 per share settlement with Twitter after the stock market crash, which struck in April, appears costly in the current environment, with shareholders generally expected to vote in favour. Currently, Twitter’s shares are worth around $41.

Twitter claimed a payment to a whistleblower did not violate any of the terms of its sale to Musk, after the world’s richest man made another attempt to cancel the deal earlier on Monday.

According to Twitter’s lawyers, Musk’s justification for wanting to annul the agreement was “invalid and unjust.”

Last week, Musk’s lawyers claimed that Twitter violated the terms of the merger deal by not getting their permission before paying whistleblower Peter Zatko and his lawyers $7.75 million. The merger agreement includes limits on when Twitter can make such payments.

Zatko, who was let go by Twitter in January as the company’s security chief, last month accused the social media company of making false claims about the strength of its security plan and misrepresenting its defenses against hackers and spam accounts. Put it.

America will meet the whistleblower. The Senate Judiciary Committee met on Tuesday to discuss the allegations.

“With the Musk camp now being allowed to include Zatko’s claims in its testimony for Delaware, tomorrow’s hearing will be closely watched by the Street,” Wedbush analysts wrote in a note.

The trial between Twitter and Musk is set to begin October 17 in Delaware Chancery Court.

Legal advisers to Musk, who also serves as the CEO of electric vehicle maker Tesla Inc., were not immediately available for comment.

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