Twitter has accepted billionaire Elon Musk’s $44 billion bid to buy the social media site on Tuesday. Twitter’s current market price is less than $42 compared to the approval of Musk’s offer at $54.20.
Earlier Musk had attempted to back out of the transaction, claiming that there were issues with the company’s business. Twitter, on the other hand, is fighting tooth and nail to get the agreement done. The purchase is currently being litigated in court by both Musk and Twitter.
Twitter said in a statement that the deal had been approved by the company’s shareholders. Twitter CEO Parag Agrawal made brief remarks during the virtual meeting for voting, after which the consent was granted.
Twitter in it’s statement said, “Based on a preliminary tabulation of the stockholder vote, approximately 98.6% of the votes cast at the Special Meeting approved the proposal to adopt the Merger Agreement.”
It further added, “Twitter stands ready and willing to complete the merger with affiliates of Mr Musk immediately, and in any event, no later than on September 15, 2022, the second business day following the satisfaction of all conditions precedent, which is the timeline required by the merger agreement.”
Musk and Twitter are already battling in court over Musk’s declaration that he was canceling the $44 billion purchase of the firm. The reason he said was that the social media giant deceived him about the number of bot accounts on the network. Twitter, on the other hand, dismissed his assertions.
According to reports, Twitter stated that it had suffered significant financial losses as a result of Musk’s decision to withdraw from the transaction. Earlier in September, Musk hinted that he would go ahead with the Twitter acquisition and gave detailed information on phony and bot accounts. In late July, a shareholder lawsuit was also filed, claiming that the reason for canceling Musk’s acquisition was ‘dumb.’
In a recent hearing on September 7, a US Judge authorized Musk to amend his complaint against Twitter after his attorneys requested it in response to a whistleblower’s concern about the social media giant’s security standards. However, the judge refused to allow a stay in the litigation over the termination of the plan to purchase Twitter.
The Delaware court’s chancellor, Kathaleen McCormick, stated in her order that Musk might include the August allegations made by ex-security head Peiter Zatko. She did, however, deny Musk’s plea to delay the litigation.
Notably, in his allegations, former Twitter security chief Peiter Zatko said that Twitter had engaged in wrongdoings such as “and measurement of user engagement.”
Musk’s lawyers also sent a subpoena to Zatko, requesting “records and communications” in connection with his charges against the corporation. Musk sent a second deal termination letter to Twitter in response to Zatko’s allegations.
Musk’s attorneys stated in the second letter that if Zatko’s allegations were genuine, it “demonstrates that Twitter has breached” a number of clauses in its merger agreement with Musk. This included the company’s adherence to all regulations and its claim that it never provided inaccurate information to security officials.
In his disclosures, Zatko alleged that Twitter had breached a 2011 FTC consent order addressing user data privacy. He also accused Facebook of violating “its general obligations under data privacy, unfair trade conduct, and consumer protection laws and regulations.”
The decision on Musk’s and Twitter’s contract will be made at a five-day trial planned for October 17 in Delaware.
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