Key points: A majority of Twitter’s shareholders have given their approval for the $US44 billion ($63.9 billion) sale of the social media organization to billionaire Elon Musk.
Twitter’s stocks experienced a decline in the current inventory marketplace downturn, dropping to approximately $US41 ($59.5) per share, significantly lower than Mr. Musk’s original $US54.20 ($78.7) per-share deal. Despite the drop in stock value, a majority of shareholders voted in favor of the sale to Elon Musk, securing the deal. The shareholder vote’s deadline was Tuesday, but enough votes were received by Monday night to ensure the deal’s outcome.
Elon Musk has decided not to proceed with the acquisition and is set to fight Twitter in court starting on October 17. He claims that he was misled about the spam accounts on the platform and was not informed about a pay agreement with one of Twitter’s top executives.
A whistleblower complaint from a former Twitter employee has bolstered Musk’s position in the upcoming trial. The complaint accuses Twitter of falsely claiming a robust security plan and making deceptive statements about defenses against hackers and spam accounts.
Despite the legal challenges, the deal seems likely to proceed, with shareholders expected to vote in favor, especially given the drop in Twitter’s stock value, making Musk’s offer more favorable. The court battle between Musk and Twitter is anticipated to be lengthy and contentious, with experts closely watching the proceedings to see how it unfolds. The trial is scheduled to begin on October 17 in Delaware Chancery Court.