September 30, 2022
Most Twitter Shareholders Vote for Sale to Elon Musk

A majority of Twitter shareholders have voted in favor of the $44 billion sale of the social media company to Elon Musk, people familiar with the tally said on Monday.

Sources said the shareholder vote deadline on the deal is Tuesday, but enough investors had voted by Monday evening for the outcome to be certain.

The sources requested anonymity ahead of the official announcement. Representatives for Twitter and Musk did not immediately respond to requests for comment.

Musk has informed Twitter that he will not proceed with the acquisition, arguing that he was misled by spam accounts on the platform and about the salary agreement the company reached with one of its top executives. had not been. A fight between the two sides is to take place in the court next month.

Shareholders were widely expected to vote after Musk’s $54.20-per-share deal for Twitter, which was signed in April, looks expensive in the current environment after the stock market slump. Twitter shares are now hovering around $41.

Earlier on Monday, Twitter said a payment made 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.

Lawyers for Twitter said Musk’s reasons for withdrawing from the deal were “invalid and incorrect.”

Last week, Musk’s lawyers said Twitter’s failure to get his consent before paying $7.75 million to whistleblower Peter Zatko and his lawyers violated the merger agreement, which restricts when Twitter can make such payments. Is.

Zatko, who was fired by Twitter as the company’s security chief in January, accused the social media firm last month of falsely claiming it has a solid security plan and making misleading statements about its defenses against hackers and spam accounts. giving.

The whistleblowers will meet with the Senate Judiciary Committee 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 Twitter vs. Musk trial is set to begin in Delaware Chancery Court on October 17.

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