Twitter shareholders formally voted to accept Elon Musk’s $44 billion offer to take the company private, several outlets reported Tuesday afternoon, a largely expected move that adds to the bizarre, dramatic public showdown between the company and Musk as the world’s wealthiest man exhibits buyer’s remorse.
The Key Facts
Twitter announced the vote’s passing in a five-minute investor call, accordingCNBC.
Reuters and Wall Street JournalTwitter reported Monday night, that it received enough votes for the measure to be passed.
In Tuesday’s trading, Twitter shares rose to $41.72, a.6% increase in a day otherwise difficult for markets.
Twitter announced April 25 it agreed to terms with Musk, 21 days after Musk disclosed he became the company’s largest shareholder, potentially setting the stage for a hostile takeover. It was an odd marriage, considering Musk was a harsh critic of the platform’s policies, and the spark between the two quickly flamed out, as Musk filed paperwork July 8 looking to back out of the deal, blaming the presence of spam and fake accounts on the site. Twitter subsequently sued Musk in Delaware’s Court of Chancery to force the deal to go through. Musk’s argument was bolstered last month when Twitter’s former head of cybersecurity Peiter Zatko’s whistleblower complaint went public, alleging the company misled investors and regulators on numerous issues, including user privacy and the presence of bots on the site. Last week, a Delaware judge decided that Musk may include the information in the countersuit. However, the court refused to postpone the trial.
30%. That’s the premium Musk’s $54.20 per share purchase price represents on Twitter stock’s $41.72 ticker Tuesday. The price of Twitter shares is roughly the same as it was before Musk announced he would be buying the stock. However, the price rose more than $50 between April and May after Musk made public his hesitation.
Here’s What to Watch
Musk and Twitter’s Delaware trial will start October 17 and last five days.
Zatko gave evidence Tuesday morning to the Senate Judiciary Committee. He spoke out about his whistleblower concerns and how they relate to national security. One point, Zatko told the Senate Judiciary Committee that a Twitter executive disregarded his concerns regarding foreign agents employed by the platform. Sen. Ron Wyden (D-Ore.) told SME he was “deeply disturbed” by the testimony.
Musk, which is valued at $266 billion and about $100 million more than anybody else, we estimate. A large part of his wealth is due to Tesla’s stake, where he serves as CEO. Musk revealed in August that he had sold Tesla stock worth $7 billion. He explained that he was unable to renegotiate the Twitter deal and needed cash.
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