Preparations for Elon Musk’s purchase of Twitter’s assets are progressing as planned, although the future of the deal remains in question given the buyer’s unwillingness to complete it on the terms agreed in April. Back in June, the company’s board of directors recommended that shareholders approve the transaction, and the vote that started this week has already garnered a sufficient number of votes in favor.
Formally as explained Reuters, the Twitter shareholder vote was supposed to end today, but already on Monday, according to informed sources, the number of votes was collected, allowing us to talk about the approval of the transaction by the majority of the company’s shareholders. Recall that under terms agreed in April, Elon Musk must pay $54.20 per share. Now the exchange rate of these securities barely exceeds $41.
The day before, Twitter’s lawyers also said that the last of the three reasons why Elon Musk considers it possible to refuse to buy social network assets is unconvincing and serves as a basis for breaking the April agreements. The $7.75 million severance payment in June to former Twitter chief information security officer Peiter Zatko did not violate business-as-usual requirements, the company said.
Large institutional investors holding Twitter stock, it says The Wall Street Journalalso voted for the deal. Elon Musk himself, despite controlling a 9.6% stake in Twitter, did not take part in the vote and may have delegated voting rights on his company’s stock to the board. The Twitter v. Elon Musk trial is scheduled for October 17, and if the verdict is returned in the company’s favor within five business days, the deal can formally close by October 24 as originally planned.