Tue, 13 Sep 2022 10:47 PM IST
Twitter Inc's shareholders on Tuesday approved USD 44 billion buyout by Elon Musk and handed over the deal's outcome to a court battle in which the billionaire is trying to scrap the purchase.
Meanwhile, earlier on Monday, a majority of Twitter Inc's shareholders voted in favor of the social media company's $44 billion sale to Elon Musk.
Musk has earlier informed Twitter, that he will not go ahead with the acquisition, arguing 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.
Shareholders voted in favour after a stock market downturn made Musk's $54.20-per-share deal for Twitter, which was signed in April, look pricey in the current environment. Twitter shares are now hovering around $41.
Earlier on Monday, Twitter said payments made to a whistleblower did not breach any terms of its sale to Musk, after the world's richest man made another attempt to scrap the deal.
Twitter's lawyers said Musk's reasons for wanting to back out of the deal were "invalid and wrongful."
Last week, lawyers for Musk said Twitter's failure to seek his consent before paying $7.75 million to whistleblower Peiter Zatko and his lawyers violated the merger agreement, which restricts when Twitter could make such payments.
Zatko, who was fired by Twitter in January as the company's security head, accused the social media firm last month of falsely claiming it had a solid security plan and making misleading statements about its defences against hackers and spam accounts.
The Twitter vs Musk trial is scheduled to start on Oct. 17 in Delaware Chancery Court. Lawyers for Musk, who is also CEO of electric car maker Tesla Inc, were not immediately available for comment.
(With Agency Inputs)