Elon Musk may be fighting tooth and nail get out of his deal to buy Twitter, but the social media company’s shareholders plan to hold him to it.
The vast majority of Twitter
(TWTR) Shareholders voted Tuesday in favor of Musk’s $44 billion acquisition deal, worth $54.20 per share. The company’s stock opened Tuesday at just under $41 a share, nearly 25% below the deal price.
A preliminary count indicated that 98.6% of votes cast Tuesday were in favor of the deal, Twitter said in a statement pronunciation.
“Twitter stands ready and willing to complete the merger with Mr. Musk’s subsidiaries immediately, and in any event no later than September 15, 2022, the second business day following the fulfillment of all conditions precedent, which is the timeline required. is by the merger agreement.”
The vote came days after Musk’s third letter to Twitter seeking to end their deal, with it linked to an alleged $7.75 million severance payment the company made to its former chief of security, Peiter Zatko, who later blew the flute about the alleged security and privacy vulnerabilities.
In the letter, Musk’s lawyers claimed that the payment — which was allegedly made to Zatko and his lawyers on June 28 as part of a divorce agreement — violated a provision of the acquisition contract. Twitter agreed not to provide severance payments to employees for amounts outside of “the normal course of business in accordance with past practice,” according to the contract.
Twitter beat Musk’s latest attempt to get out of the deal as “void and illegitimate”.
Musk first sent a letter to end the deal in July, alleging that Twitter had violated the agreement by misrepresenting the number of spam and fake bot accounts on his platform. Twitter sued Musk to finalize the acquisition, accusing the billionaire of using bots as a pretext to close a deal that he developed buyer’s remorse after a market decline.
Zatko testified Tuesday before the US Senate over what he claimed are Twitter’s serious security and privacy vulnerabilities, including potentially having foreign intelligence agents on its payroll.
The case between Musk and Twitter will go to court on October 17.
– Clare Duffy of CNN Business contributed to this report