Updated September 13, 2022 at 2:48 pm EDT|Posted September 13, 2022 at 6:15 am EDT Twitter shareholders on Tuesday voted in favor of Elon Musk’s $44 billion takeover bid, putting the world’s richest man on a collision course with the social networking company as the two head to court in October. View live ChevronRight policy updates The approval — to accept Musk’s offer of $54.20 per share, well above the stock’s current price of about $42 — was widely expected. Twitter has moved forward with the deal, despite Musk’s attempts to back out due to what it says are problems with the company’s operations. The vote followed testimony from a Twitter whistleblower in the Senate on Tuesday morning, who claimed the company’s failure to secure sensitive data is causing “real harm to real people.” Peiter “Mudge” Zatko’s Senate testimony — which expanded into an 84-page complaint shared with regulators and the Washington Post this summer — alleged that Twitter executives misled the public, regulators and the company’s board of directors about the failed state of data security practices. He described an executive team that had financial incentives to ignore key problems, such as employees having too much access to data. Because the company did not properly monitor data access, he claimed, it was impossible for the company to respond to critical national security risks – including access by potential foreign agents to its payroll. Former security chief claims Twitter buried ‘extreme flaws’ Zatko, the company’s former security chief and a noted hacker, based his highly technical revelations on examples of risks that lawmakers could relate to, suggesting that such unrestricted access could lead to Twitter engineers sending unauthorized tweets from their accounts. “It doesn’t matter who has keys if you don’t have locks on the doors,” he said. “It’s not far-fetched to say that one employee within the company could take over the accounts of all the senators in this chamber.” Twitter had previously said that Zatko’s claims appeared to be “filled with inaccuracies” and that security and privacy were top priorities for the company. Twitter did not respond to requests for comment on Zatko’s filing. Zatko’s testimony could also affect Twitter’s ongoing feud with Musk, who has already incorporated some of the arguments from the whistleblower’s complaint into court. Twitter whistleblower reveals limits of FTC’s power Zatko’s testimony is already becoming a headache for Twitter and its CEO, Parag Agrawal. Many senators criticized Agrawal for refusing to testify before the Senate Judiciary Committee over the company’s ongoing dispute with Musk. Sen. Charles E. Grassley (R-Iowa), the top Republican on the committee, said that if Zatko’s allegations are true, Agrawal should be forced to step down as chief executive. The revelations on Tuesday appeared to prompt bipartisan soul-searching among lawmakers, many of whom spoke of a combined failure to enforce the law against tech companies. Zatko alleged that Twitter did not follow through on commitments it made to the Federal Trade Commission to establish a data security program. Sen. Lindsey Graham (RS.C.) said he was working across party lines with Sen. Elizabeth Warren (D-Mass.) to create a new regulatory system that would mimic Europe, where lawmakers have aggressively taken measures to punish American technology companies. Twitter whistleblower won hacker recognition for exposing software flaws Sen. Richard Blumenthal (D-Conn.) floated the idea of creating a new technology enforcement agency that would specifically address data security and national security threats posed by tech companies. “I think the growing evidence shows that the current regulatory structure is failing,” Blumenthal told The Post. Zatko stressed throughout the hearing that any new regulation must be enforced with independent checks and balances to ensure that well-resourced companies cannot game the system. He also called on lawmakers to consider legislation that would extend whistleblower protections to other government agencies so more employees could disclose critical information to the government. Zatko and Frances Haugen, a prominent Facebook whistleblower, filed their complaints with the Securities and Exchange Commission, which has a special program that offers rewards and protections for such whistleblowers. The FTC, the industry’s main technology regulator, has no such program. Early in the hearing, Zatko spoke of the personal and professional toll that filing his complaint had taken on him and his family. He said he did not make his revelations “out of malice or to hurt Twitter.” “What you did today will not be in vain,” Graham said.
Twitter’s shareholder vote is seen as a strategic move ahead of the lawsuit
Back to menu Elon Musk’s takeover bid for Twitter will be tested on October 17. Some investors, as well as governance and legal experts, have pointed to the shareholder vote as a key date on the calendar, signaling Twitter’s willingness to finalize the matter and put pressure on Musk as the deal heads to court. Some of those experts also cited the shareholder vote as a possible impetus for settlement talks as the matter nears trial. Twitter has argued for a speedy trial in an attempt to limit the damage to the company, an argument the judge found persuasive enough to compress the trial into a week.
Elon Musk Tweets Popcorn Emoji During Whistleblower Hearing
Back to menu Earlier on Tuesday, Musk indicated that he might attend the hearing on Tuesday — by sending a popcorn emoji on Twitter. Musk has more than 105 million followers on Twitter, where he often posts thoughts about his business, as well as jokes and memes. The judge will allow Musk to add whistleblower claims to the case against Twitter The billionaire, who plans to incorporate some of Zatko’s allegations into his upcoming lawsuit against Twitter, also changed his Twitter display name to “Naughtius Maximus.”
The shareholder vote on Twitter brings the case one step closer to trial
Back to menu Twitter shareholders’ approval of Elon Musk’s $44 billion takeover bid moves the matter one step closer to a heated court battle. Shareholders gave their consent to the deal on Tuesday, according to a preliminary vote count, the company said. The vote took place during a short virtual meeting after brief remarks by Twitter CEO Parag Agrawal. Twitter plans shareholder vote on Elon Musk’s embattled deal The result came as little surprise to those following the issue closely. Musk’s offer of $54.20 per share was significantly higher than Twitter’s current trading price of under $42.
Twitter shareholders vote in favor of the deal
Back to menu About five minutes into the investor call on Twitter, Elon Musk’s buyout deal was approved based on a preliminary count. The move was a formal step toward finalizing the deal that ends up in court in October as Musk tries to back down.
The hearing is over. Now Twitter shareholders will vote on Musk’s buyout.
Back to menu Twitter shareholders are holding a vote on Tuesday to formally consider Musk’s offer to buy the site for $44 billion, another step toward closing the deal as the contested takeover heads to the Delaware District Court. Shareholders are expected to greenlight the deal for $54.20 per share — Musk’s offer since April — a significant premium over Monday’s trading price of about $41. Twitter’s board urged shareholders to vote yes ahead of the meeting, which will take place at nearly 1pm EST. Twitter plans shareholder vote on Elon Musk’s embattled deal Shareholders were also expected to consider a measure to approve merger-related payments for Twitter executives, although a positive vote is not required to complete the deal.
Senators not committed to issuing subpoena for Twitter CEO
Back to menu Top Senate lawmakers repeatedly said at Tuesday’s hearing that Twitter CEO Parag Agrawal would not appear before the committee, but declined to say after the meeting whether they planned to issue a subpoena to compel him to appear. Sens. Richard J. Durbin (D-Ill.) and Charles E. Grassley (R-Iowa), the chairman and ranking member of the Senate Judiciary Committee, each told reporters they needed to consult with each other on the matter. Asked if he planned to hold an additional hearing on the whistleblower’s allegations, Durbin said: “It’s possible. I will discuss this with Senator Grassley.”
Twitter culture rewarded rosy reporting, hid ugly facts, Zatko claimed
Back to menu Asked why as security chief he was unable to get Twitter to meet basic security standards, Peiter Zatko said his efforts were thwarted by a culture that discouraged employees from reporting negative information. Zatko alleged in the whistleblower’s complaint that executives advertised internally and to the board that more than 90 percent of the company’s laptops had security software installed, while omitting the fact that the software showed that 30 percent of the machines had settings that were blocking software updates. is installed automatically.
Twitter engineers could tweet as senators
Back to menu Zatko claimed that because of Twitter’s lack of internal controls, the company’s engineers had broad access to the system that would have allowed them to tweet as other users — including US senators. Zatko said he didn’t specifically know that was the case, but the example underscored how he was basing his claims on anecdotal examples that senators could find relevant. Responding to lawmakers, Zatko sought to substantiate his highly technical claims by presenting the real risks and harms of the company’s alleged lack of security controls.
