Twitter Shareholders Vote for Elon Musk’s $44 Billion Acquisition Deal

The vast majority of Twitter (TWTR) Shareholders voted Tuesday in favor of Musk’s $44 billion acquisition deal, worth $54.20 per share. The company’s stock opened Tuesday at just under $41 a share, nearly 25% below the deal price.
A preliminary count showed that 98.6% of the votes cast Tuesday were in favor of the deal, Twitter said in a statement.

“Twitter stands ready and willing to complete the merger with Mr. Musk’s subsidiaries immediately, and in any event no later than September 15, 2022, the second business day following the fulfillment of all conditions precedent, which is the timeline required is by the merger agreement.”

The vote came days after Musk’s third letter to Twitter to end their deal, with it linked to an alleged $7.75 million severance payment the company had made to its former head of security, Peiter Zatko, who later rang the bell. about the alleged security and privacy vulnerabilities.

In the letter, Musk’s lawyers claimed that the payment — which was allegedly made to Zatko and his lawyers on June 28 as part of a divorce agreement — violated a provision of the acquisition contract. Twitter agreed not to provide severance payments to employees for amounts outside of “the normal course of business in accordance with past practice,” according to the contract.

Twitter labeled Musk’s latest attempt to get out of the deal “void and illegal”.
Twitter's Whistleblower Testifies Before Senate Committee

Musk first sent a letter to end the deal in July, alleging that Twitter had violated the agreement by misrepresenting the number of spam and fake bot accounts on his platform. Twitter sued Musk to complete the takeover, accusing the billionaire of using bots as a pretext to close a deal that he developed buyer’s remorse after a market decline.

Zatko testified before the US Senate on Tuesday about what he claimed are Twitter’s serious security and privacy vulnerabilities, including potentially having foreign intelligence agents on its payroll.

The case between Musk and Twitter will go to court on October 17.

— Clare Duffy of CNN Business contributed to this report

Add a Comment

Your email address will not be published.