News hardware Twitter vs Elon Musk: shareholders approve takeover deal
The takeover of Twitter by Elon Musk is still up in the air and the twists and turns continue ahead of the long-awaited trial that will define who of Twitter or Musk will have the final say. For Twitter shareholders, the issue was quickly resolved and the vote was almost unanimous!
Between Twitter and Elon Musk, the waltz continues to finally know whether or not the CEO of SpaceX will be obliged to keep his commitment by buying the social network.
To get back into the swing of things, Elon Musk, the richest man in the world, had announced that he wanted to buy the social network for the modest sum of 44 billion dollars before withdrawing from the agreement, pointing in particular to the number of fakes accounts on Twitter.
However, Twitter decided not to let it go and decided to take the case to court in order to force Elon Musk to conclude the agreement.
Twitter shareholders overwhelmingly approve Elon Musk’s (suspended) takeover bid
It is in this rather tense context that the shareholders of Twitter held an important meeting for the future of this takeover. They therefore met this Tuesday, September 13 in San Francisco to give their opinion.
And it is without too many surprises that the shareholders voted almost unanimously, with 98.6% of the votes, to approve the agreement. Unsurprisingly, because for them the cancellation of this agreement would probably be a disaster. The company could then lose part of its listing on the stock exchange and the shareholders a fairly large sum.
But that’s not all, the shareholders bluntly announced that: “Twitter was ready and willing to complete the merger with the subsidiaries of Mr. Musk immediately, and in any event, no later than September 15, 2022”.
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 Source
This vote is very important, however, because it comes a month before the start of the trial which could force Elon Musk to finalize his purchase. Indeed, “Twitter remains committed to completing the merger at the price and terms agreed with Mr. Musk.
For the company, the termination of the agreement by the boss of Tesla is invalid and without basis and the two parties remain bound by the merger agreement. And since there is very little chance that opinions will change by then, everything should be decided before the Delaware Court of Justice!
Twitter continues to believe that Mr. Musk’s purported termination of the merger agreement is invalid and without merit, and that the Musk parties continue to be bound by the merger agreement and obligated to complete the merger on the agreed terms and conditions. Twitter has filed a lawsuit in the Delaware Court of Chancery to compel Mr. Musk to complete the acquisition, and Twitter remains committed to doing so on the price and terms agreed upon with Mr. Musk. Source
A tough legal battle is looming between Musk and Twitter
Coincidentally, the shareholder vote took place just before the hearing of the former head of IT security at Twitter, Peiter “Mudge” Zatko. The latter had been dismissed at the beginning of the year and has a lot to say on the social network!
He accused his former employer of serious failings and claimed that his dismissal was linked to the fact that he had started whistleblowing internally. In a file of 86 pages, it is possible to learn in particular the existence of unsecured servers and the hiring of an agent of the Indian intelligence services.
If this conflict is so important and publicized, it is thanks to, or because of, Elon Musk. Seeking to get out of his agreement with Twitter, which he had terminated last July, the billionaire relied on these revelations to support his appeal.
If he had first joked about the situation, Elon Musk is now in a delicate position. Indeed, if the trial goes against him, he will be forced to buy the social network at the price he had announced, which is well above market value.
For him, the agreement with Twitter is no longer valid. He considers, among other things, that the platform would have lied about the number of bots. On the other hand, Twitter believes that it is on the financial arrangement that things are blocked for Musk and that this is not a valid reason to break the agreement.