Twitter shareholders approve of billionaire Elon muskThe proposed purchase of $44 billion, paving the way for trials next month to determine the fate of the deal.
A majority of Twitter shareholders voted in favor of accepting Musk’s $54.20-a-share offer to acquire the social networking company, according to a preliminary vote count read Tuesday. Musk made the bid in April and has since sought to cancel it. The boards of two major advisory firms as well as Twitter had encouraged investors to confirm the deal.
Shares of the company are trading at $41.8, well below Musk’s proposed price, and little changed by the vote. But after the news broke they had reversed course to trade higher during the day, a rare green in a sea of stocks trading in red. Shares were up 0.7% in late trading. Year over year, Twitter stock has fallen 6%. The shareholder meeting lasted 7 minutes, with voting opening for about 3 minutes. Shareholders could also submit votes several weeks before the meeting, and Twitter sent them several messages encouraging them to vote ahead of time.
While shareholder approval was required to finalize the deal, its termination is far from a sure thing. Musk said in July that he was scrapping the deal, claiming that Twitter had misled him about the size of the company’s user base and the number of bots and spam accounts. Twitter denies those allegations, and sued Musk Delaware The court compelled him to complete the acquisition. Musk then sued the company in retaliation.
Lawyers for both Musk and San Francisco-based Twitter have been fighting for weeks over witnesses, evidence and even a court date. The trial is currently scheduled for the week of October 17 Delaware Chancery Court,
Essentially, shareholders have consented to be acquired by Twitter. Tesla The chief must rule a Delaware court to uphold the deal.
From a Twitter perspective, the shareholder vote that approved the transaction was all Musk needed to move forward with the deal. Musk disagrees, and has asked the company for more disclosures.
A majority of Twitter shareholders voted in favor of accepting Musk’s $54.20-a-share offer to acquire the social networking company, according to a preliminary vote count read Tuesday. Musk made the bid in April and has since sought to cancel it. The boards of two major advisory firms as well as Twitter had encouraged investors to confirm the deal.
Shares of the company are trading at $41.8, well below Musk’s proposed price, and little changed by the vote. But after the news broke they had reversed course to trade higher during the day, a rare green in a sea of stocks trading in red. Shares were up 0.7% in late trading. Year over year, Twitter stock has fallen 6%. The shareholder meeting lasted 7 minutes, with voting opening for about 3 minutes. Shareholders could also submit votes several weeks before the meeting, and Twitter sent them several messages encouraging them to vote ahead of time.
While shareholder approval was required to finalize the deal, its termination is far from a sure thing. Musk said in July that he was scrapping the deal, claiming that Twitter had misled him about the size of the company’s user base and the number of bots and spam accounts. Twitter denies those allegations, and sued Musk Delaware The court compelled him to complete the acquisition. Musk then sued the company in retaliation.
Lawyers for both Musk and San Francisco-based Twitter have been fighting for weeks over witnesses, evidence and even a court date. The trial is currently scheduled for the week of October 17 Delaware Chancery Court,
Essentially, shareholders have consented to be acquired by Twitter. Tesla The chief must rule a Delaware court to uphold the deal.
From a Twitter perspective, the shareholder vote that approved the transaction was all Musk needed to move forward with the deal. Musk disagrees, and has asked the company for more disclosures.