The Majority of Twitter Shareholders Approve of the Sale to Musk
- Tech News
- September 13, 2022
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The majority of Twitter shareholders vote to sell the company to Elon Musk for $44 billion
A majority of Twitter Inc shareholders voted in favor of a $44 billion sale of the social media company to Elon Musk, people familiar with the matter said on Monday.
The deadline for shareholders to vote on the deal was Tuesday, but enough investors had voted by Monday night to determine the outcome, the sources said.
The sources requested anonymity before the official announcement. Representatives for Twitter and Musk did not immediately respond to requests for comment.
Musk has told Twitter that he will not proceed with acquisitions, saying he was misled by spam accounts on the platform and that he had not been notified of a compensation settlement the company reached with one of its executives. The two sides are scheduled to fight in court next month.
Shareholders are widely expected to vote in favor after the stock market downturn made the $54.20-a-share Company deal Musk signed in April look expensive in the current environment. Company stock is now hovering around $41.
Earlier on Monday, Twitter said the payment to the whistleblower did not violate any of the terms of its sale to Musk after the world’s richest man tried again to cancel the deal.
Twitter’s lawyers said Musk’s reasons for wanting to back out of the deal were “invalid and wrong.”
Last week, Musk’s lawyers said Twitter violated a merger agreement that limited when Company could make such payments by not seeking his consent before paying whistleblower Peiter Zatko and his lawyers $7.75 million.
Zatko, who was fired as the company’s security chief by Twitter in January, accused the social media company last month of falsely claiming it had a solid security program and of misleading its defenses against hackers and spam accounts with sexual statements.
The whistleblower will meet with the U.S. Senate Judiciary Committee on Tuesday to discuss the allegations.
“Tomorrow’s hearing will be closely watched by Wall Street as the Musk camp is now allowed to incorporate Zatko’s claims into Delaware testimony,” Wedbush analysts wrote in a note.
Twitter’s trial with Musk is scheduled to begin on Oct. 17 in Delaware Chancery Court.
A lawyer for Musk, who is also the CEO of electric car maker Tesla Inc, had no immediate comment.
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