Tesla CEO Elon Musk speaks in March 2019 ahead of the Model Y debut at Tesla’s design studio in Hawthorne, California.. Musk’s legal team is asking to hear from a former executive Twitter executive, who could help strengthen Musk’s case for backing out of a $44 billion deal to buy the social media company.
Jae C. Hong / AP
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Jae C. Hong / AP
Tesla CEO Elon Musk speaks in March 2019 ahead of the Model Y debut at Tesla’s design studio in Hawthorne, California.. Musk’s legal team is asking to hear from a former executive Twitter executive, who could help strengthen Musk’s case for backing out of a $44 billion deal to buy the social media company.
Jae C. Hong / AP
Nearly all of Twitter’s shareholders voted to approve the social media giant’s deal with Tesla CEO Elon Musk, who agreed to buy it for $44 billion. but has since tried to withdraw.
About 98.6% of stock holders approved the buyback at $54.20 per share. That’s nearly $50 higher than Twitter’s share price when the deal was done and nearly 30% above its $41.90 per share value when the market opened on Thursday.
“Shareholder approval meets the final condition prior to closing the merger under the merger agreement.” Twitter said. The social media company said it was ready to finalize the deal “immediately” and no later than Thursday, in accordance with the requirements of the agreement.
Musk first agreed to buy Twitter in April for $44 billion. However, an attorney for Musk has sent several letters to the Securities and Exchange Commission, with the most recent being last Friday.
The attorney sent termination notices in July and August, and wrote that the most recent letter was “legally unnecessary” but he sent it “in the event that the Notice of Termination dated May 8 7 or alternatively, the August 29 Notice of Termination is determined to be invalid for any reason.”
Twitter sued Musk in July overcome the broken deal. Musk claimed that he changed his mind because the company underestimated the popularity of bots – fake accounts – on its platform.
Last month, Twitter’s former chief of security, Peiter Zatko, filed a complaint alleging that the company’s lax security practices put users’ personal data at risk and that the social media company at risk of violating settlement agreements with federal regulators. He also alleges that the Indian government forced Twitter to hire two government employees with access to sensitive data.
Musk added Zatko’s concerns to his legal claims as soon as they are made public. Now he says that Twitter is damaged merchandise, and by concealing such serious problems, it has committed fraud.
