Twitter Shareholders Approved Elon Musk’s $44B Bid, Despite Lawsuit
The decision comes shortly after the company’s former head of security testified before the Senate Judiciary Committee.
Although Elon Musk seeks to scrap the deal to purchase Twitter and make it a private company, the social media giant’s shareholders voted to approve the buyout offer for $44 billion.
The two sides are set to meet in a Delaware court next month to determine the firm’s faith.
- Citing a brief conference call among Twitter’s shareholders, Bloomberg reported that they have voted in favor of accepting Elon Musk’s buyout offer worth $44 billion.
- Since the billionaire wants to back out of the deal, Twitter will now try to force him into acquiring the company in court.
- Musk outlined plans to purchase the social media platform earlier this year and made an offer for $44 billion. However, he changed his mind a few months later, claiming that the company failed to provide him with accurate data about the number of fake accounts on the platform.
- Twitter officials refuted his claims, asserting that the percentage of monetizable daily active users (those able to look at ads) is less than 5%. As such, the company decided to sue Musk for backing out of the deal and even blamed him for the poor Q2 results.
- Interestingly, Twitter’s net worth is around $32 billion, according to some estimations, a significantly lower number than Musk’s offer.
- The approval from Twitter’s shareholders comes just a day after the company’s former head of security – Peiter Zatko – testified before US Senate, alleging that the social media giant is “a decade behind” certain security standards.
- He has also previously supported Musk’s claims that the number of fake profiles is much higher than what Twitter claims. A US judge said Musk’s lawyers will be able to use the whistleblower’s testimony in court.
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