Musk’s $44 billion deal gets Twitter shareholder nod

Twitter shareholders approve billionaire Elon MuskThe proposed $44 billion buyout, paving the way for a test next month to determine the fate of the deal.
A majority of Twitter shareholders voted in favor of accepting Musk’s offer to buy the social networking company at $54.20 per share, according to preliminary vote counting results released Tuesday. Musk launched the bid in April and has since sought to cancel it. Twitter’s board – along with two well-known advisory firms – encouraged investors to ratify the deal.
The company’s shares are trading at $41.8, well below Musk’s suggested price, and little changed by the vote. But they reversed course for the day to trade higher after the news broke, a rare blue in an ocean of stocks trading in the red. Shares were up 0.7% in late trades. To date, Twitter stock is down 6%. The shareholder meeting lasts 7 minutes, with polls open for about 3 minutes. Shareholders can also submit their votes in the weeks leading up to the meeting, and Twitter has sent many messages encouraging them to vote ahead of time.
While shareholder approval is required to close the deal, its completion is far from certain. In July, Musk said he was canceling the deal, claiming that Twitter misled him about the size of the company’s user base as well as the number of bots and spam accounts. Twitter denied those allegations and sued Musk in a Delaware court to force him to complete the acquisition. Musk later sued the company.
Attorneys for both Musk and Twitter based in San Francisco have for weeks fought over witnesses, evidence and even court dates. The trial is now set for the week of October 17 in Delaware Premier Court.
Essentially, the shareholders agreed to Twitter being acquired by Tesla So the court of Delaware ruled to uphold the agreement.
From Twitter’s perspective, a shareholder vote approving the transaction is all Musk needs to move forward with the deal. Musk disagreed and asked the company for further disclosure.

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