With regard to its payment to the whistleblower, Twitter denied breaking any of the terms of its sale to Musk and argued that Musk’s justifications were “invalid and unjust.”
Twitter Shareholders approve the sale, and the business disputes the deal’s breach of the whistleblower payment.
The $44 billion sale of the social media business to Elon Musk was approved by the majority of Twitter Inc.’s shareholders, setting the stage for the October trial in the Delaware Courts. Even though the shareholder vote deadline for the acquisition is Tuesday, enough investors had already cast their votes by Monday evening, according to Reuters, which cited its sources.
Musk had withdrawn from the Twitter agreement, claiming he had been deceived about the platform’s spam accounts and had not been aware of a pay agreement the firm had signed with one of its senior employees.
Shareholder approval was anticipated after a stock market slump made Musk’s April deal for $54.20 per share for Twitter appear expensive in light of the current economic climate. Currently, the price of Twitter shares is around $41.
Twitter then revised its position on the whistleblower payout on Monday, claiming that it did not violate any of the terms of its acquisition to Musk. Twitter’s legal team emphasised that Musk’s justifications for wanting to cancel the agreement were “invalid and unlawful.”
The richest man in the world made another attempt to avoid the agreement last week. Musk’s attorney said Twitter violated the merger agreement, which places limitations on when it may make such payments, by failing to obtain his permission before paying whistleblower Peiter Zatko $7.75 million.
The whistleblower will raise the charges with the US Senate Judiciary committee on Tuesday.
The hearing tomorrow will be eagerly monitored by the Street because the Musk camp is now permitted to incorporate the Zatko assertions in its case for Delaware, according to a note from Wedbush analysts.
On October 17, the Twitter v. Musk trial is set to begin.