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Twitter shareholders finally voted to approve the contentious $44 billion buyout, as the case with Musk goes to trial.
The shareholders of Twitter (NYSE: TWTR) have voted in favor of Elon Musk’s $44 billion takeover bid for the company. The shareholders approve, a requirement for completion of the buyout, even as a trial between Musk and Twitter looms. Although Musk initially offered to acquire the social media giant in April, he eventually backed out three months later. According to Musk, his decision to back out is because of a disagreement in opinion between both parties regarding Twitter’s alleged fake and bot accounts. In addition, Musk’s team accuses the microblogging platform of failing to provide further information on this subject of dispute.
The businessman and his team also claim that Twitter also provided dubious and misleading information regarding the contentious subject matter. As it stands, Twitter shareholders approved the Tesla CEO’s buyout two weeks after a filing that showed that he had sent a second termination letter regarding the acquisition.
Twitter Shareholders Approve Buyout Ahead of October Trial
As Twitter shareholders approve the buyout, attention now drifts to the impending October trial where Musk and Twitter will lock horns. The social media giant is keen on forcing the billionaire businessman to honor the original terms of the $44 billion, or $54.20-a-share deal. However, Musk intends to stand his ground on walking away from the acquisition. The Tesla CEO prepares to argue and back his claim regarding the number of fake Twitter accounts. Twitter, in its defense, has repeatedly denied Musk’s accusations regarding its user base and spam accounts. In addition, the social media company says it has been cooperative with the Tesla CEO and provided all requested information.
Musk-Twitter Legal Showdown
After Musk announced he was pulling the plug on the deal in July, Twitter first sued him to force completion. This development triggered a counter lawsuit from the Tesla CEO, and both parties now seek arbitration at the Delaware’s Court of Chancery. Attorneys representing both Musk and Twitter have reportedly been locked in a dispute over details and elements pertinent to the case. These include relevant witnesses, evidence, as well as the court date itself.
The finally agreed-upon date for the showdown between Musk and Twitter is the week of October 17th. As this date approaches, Musk is trying to strengthen his case with additional evidence. This includes revelations from former senior Twitter executive Peiter “Mudge” Zatko regarding the company’s mode of operations. Zatko, who once served as Twitter’s head of security, alleges that the social media giant violated multiple regulatory requirements. In addition, the whistleblower also claims that the company has lax security practices. Lastly, Zatko reported that Twitter has given false and misleading information regarding the number of bot and spam accounts it maintains. Testifying before a US Senate committee earlier on Tuesday, Zatko said Twitter has been reckless with personal user data.
Twitter denies Zatko’s allegations and suggests that he is a disgruntled former employee who was fired for poor performance.