A majority of shareholders of Twitter Inc have voted in favour of its $44-billion sale to Elon Musk, according to a Reuters report. Twitter shareholders are voting on the deal and the deadline for voting is Tuesday (September 13). However, the report said that enough investors of the social media company had voted by Monday evening for the outcome to be certain.
Musk has already informed Twitter that he will not go ahead with the acquisition. Musk argued that he was misled over the spam accounts on the platform and was not notified of a pay settlement the company reached with one of its top executives. The two sides are scheduled to battle it out in court next month.
Last month, Elon Musk said his planned $44-billion takeover of Twitter should move forward if the company can confirm some details about how it measures whether user accounts are spam bots or real people. The Tesla CEO has been trying to back out of his April agreement to buy the social media company, leading Twitter to sue him last month to complete the acquisition.
The issue start on April 4, 2022, when Twitter came out with a public statement that Musk has taken a 9.2 per cent share of the company, working out to around $2.9 billion based on March 4 share price.
Next day, on April 5, 2022, Twitter CEO Parag Agrawal announced that Elon Musk was appointed to Twitter’s board in a series of tweets. Agrawal tweeted that I’m excited to share that we’re appointing @elonmusk to our board! Through conversations with Elon in recent weeks, it became clear to us that he would bring great value to our Board.”
However, later that week, the Twitter CEO announced he would not be joining the social media firm’s board.
The disclosure from Agrawal follows a series of unusual tweets from Elon Musk over the same weekend in which he wondered aloud to his over 80 million followers if Twitter was dying, citing low frequency of tweets from some of the most popular personalities on the social network.Twitter shareholder sues the Tesla CEO in a federal securities class action lawsuit because Musk failed to disclose his 5 per cent stake in Twitter when he was required to do so.
This delay allowed Musk to buy more shares of Twitter at a lower price and cheat sellers of Twitter stock out of increased profits, the plaintiff claims. Elon Musk makes an offer to buy the whole company, Twitter, at $54.20 per share at $43 billion on April 14. He filed the offer with the SEC and tweeted a copy of the official offer.
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