Tech

Twitter Shareholders Approve Musk’s $44 Billion Acquisition


Shareholders of Twitter Inc. approved a $44 billion buyout proposal by billionaire Elon Musk, paving the way for a test next month to determine the fate of the deal.

Shareholders of Twitter Inc. approved a $44 billion buyout proposal by billionaire Elon Musk, paving the way for a test next month to determine the fate of the deal.

A majority of Twitter shareholders voted in favor of accepting Musk’s offer to buy back $54.20 a share to acquire the social networking company, according to preliminary vote counting results released Tuesday. Musk launched the bid in April and has since sought to cancel it. Twitter’s board – along with two well-known advisory firms – encouraged investors to ratify the deal. The company’s stock was little changed after the vote and closed at $41.74, well below Musk’s suggested price.

The special shareholder meeting convened for the counting of votes lasted 7 minutes, with about 3 minutes opening the polls. Investors can also submit their ballots in the weeks before the meeting, and Twitter has sent many messages encouraging them to vote ahead of time.

While investor approval is required to finalize the deal, its completion is far from certain. In July, Musk said he was canceling the deal, claiming that Twitter misled him about the size of the company’s user base and the number of bots and Spam Accounts. Twitter denied those allegations and sued Musk in a Delaware court to force him to close the acquisition. Musk later sued the company.

The company said 98.6% of the votes were in favor of the deal. Musk, Twitter’s largest shareholder, did not vote, according to two Everyone Get used to your decision. Musk owned nearly 10% of Twitter – more than 73 million shares – when he agreed to buy the company.

Attorneys for both Musk and Twitter based in San Francisco have for weeks fought over witnesses, evidence and even court dates. The trial is currently set for the week of October 17 at the Delaware Chancery Court. From Twitter’s perspective, a shareholder vote approving the transaction is all Musk needs to move forward with the deal. Musk disagreed and asked the company for further disclosure.

Musk recently sought to bolster his case by citing revelations from a former senior Twitter operating-turning-horn-blower Who launched in late August. Peiter “Mudge” Zatko, Twitter’s former chief security officer, alleges that the company is violating multiple regulatory requirements, implementing lax security measures, and publishing false information. difference in the number of bots on its service.

Twitter denies Zatko’s claims, calling him a former disgruntled Staff who was fired for poor performance. Last week, Judge Kathaleen St. J. McCormick, who will oversee the trial in October, said Musk could use some of Zatko’s denunciation claims in his argument against Twitter, but dismissed his attempt to push the trial back. again.

Zatko testified before a US Senate committee earlier on Tuesday, saying his former employer was reckless with personal user data and was armed with outdated security tools. Many senators argue that more formal regulatory oversight is needed for tech companies like Twitter, though nothing concrete has been released.



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