Twitter shareholders on Tuesday voted to approve a cope with billionaire Elon Musk, who signed an agreement in the spring to choose the social networking for $44 billion. Musk is currently attempting to back from the deal, but Twitter shareholders appear to have said they need it to move forward.
At a particular meeting, about 60% of Twitter shareholders voted on the offer. About 59.2% of these Twitter shareholders voted to approve the agreement, in accordance with a filing to the united states Securities and Exchange Commission. Beneath the agreement, Musk would pay $54.20 per share for Twitter. The publicly traded company would also become private.
Shareholders had until Tuesday’s meeting to join up their votes. The meeting itself occurred with little fanfare and without executives taking questions from attendees. Twitter CEO Parag Agrawal didn’t make any comments.
The shareholder approval may be the latest development in the chaotic story around a potential sale of Twitter. Musk’s flip-flop on purchasing the social networking has generated uncertainty about Twitter’s future.
The initial offer to get Twitter at $54.20 per share marked a 38% premium on the company’s share price on April 1. Twitter’s stock on Tuesday was trading up about 1% from the opening bell, at $41.84 per share.
When Musk unveiled his intend to buy Twitter, he painted himself as a savior of free speech who unshackle the social networking from its self-imposed rules on content moderation. But by early July, he’d had a big change of heart and announced he was taking out of the offer.
Musk and Twitter have already been locked in a legal battle since. Twitter alleges in case filed on the summer that the Tesla and SpaceX leader doesn’t need it the social networking anymore because his personal wealth has fallen. Musk, in comparison, has accused Twitter of misrepresenting or omitting information, including concerning the amount of fake and spam accounts on its platform.
In related news, Twitter’s former head of security, Peiter “Mudge” Zatko, filed a whistleblower complaint come early july about privacy and security problems he allegedly uncovered while working at the business.
The 84-page complaint, filed with the united states Securities and Exchange Commission, Department of Justice and the Federal Trade Commission, outlines numerous security risks at Twitter. In addition, it alleges that Twitter lied to Musk concerning the amount of bots on the platform. Twitter has disputed Zatko’s claims and says his complaint is inaccurate, inconsistent and lacks context.
Musk’s lawyers are employing the whistleblower complaint within the billionaire’s case to get rid of the offer. Zatko, who’s denied he filed the complaint to greatly help Musk, testified before a Senate committee earlier Tuesday.
Twitter and Musk are set to go head-to-head in a five-day trial in the Delaware Chancery Court starting Oct. 17.