Twitter shareholders approve Elon Musk’s $44 Bn takeover deal ahead of court proceeds


On September 13, the $44 billion acquisition deal between Twitter and billionaire tycoon Elon Musk was approved by the company’s shareholders.

The majority of Twitter’s shareholders approved Musk’s $54.20 per share buyout offer that he made in April, but in July, Musk “terminated” the agreement due to the “inaccurate representation” of spam accounts on the microblogging platform.

The approval from the shareholders comes before the trial over whether the $44 billion acquisition should be finalised will take place next month. The legal conflict is set to start on October 17.

The San Francisco-based business sued Musk for cancelling the contract, but the Tesla CEO filed a countersuit, claiming Twitter had exaggerated the number of fake and spam accounts utilising its service.

Last Monday, a Delaware judge decided that Musk may use the accusations made by Twitter whistleblower Peiter Zatko in his case but denied his plea to postpone the trial.

Former Twitter security chief Zatko has charged the corporation with lying about how it handles fake accounts and automated “spam bots.” This accusation is at the heart of Musk’s effort to get out of the agreement to acquire the company.

In addition, Zatko asserted that Twitter’s inadequate cyber defences leave it open to abuse by “teenagers, thieves, and spies,” endangering the privacy of its users.

Appearing before the US Senate Judiciary Committee on September 13 to lay out his allegations, Zatko said, ““I am here today because Twitter leadership is misleading the public, lawmakers, regulators and even its own board of directors.”

“They don’t know what data they have, where it lives and where it came from and so, unsurprisingly, they can’t protect it,” he added.

Subscribe to our Newsletter!

Get the latest on the Startup ecosystem delivered to you every day. Made for the Smart and Ambitious.