Earlier reports of the possible positive result came from Reuters and the Wall Street Journal, both based on an unspecified number of anonymous sources. The official deadline for voting was today, during the virtual meeting of shareholders, which was held at 10 a.m. Pacific/1 p.m. Eastern. However, even before the meeting, preliminary vote counts were enough to make the result clear. The board didn’t announce the final tally of the vote, but it’s safe to assume it was a landslide. Which makes sense, because Musk’s buyout offer is arguably a good deal for Twitter and its stakeholders. Under the terms agreed on April 25, each Twitter share would sell for $54.20, which is about 30% higher than the stock’s current price of $41.41/share as of this writing. The sale will allow interested parties to cash in at a price not seen on the New York Stock Exchange since October 2021 and equal to high-end target price estimates for the company. Previously, Twitter’s board of directors unanimously recommended that shareholders vote in favor of Musk’s buyout. G/O Media may receive a commission In fact, the only prominent shareholder in the company who is likely strongly opposed to the deal moving forward is Musk himself, who bought more than a 9% stake in the social networking platform in early April. That acquisition came ahead of the formal purchase agreement, which Musk has been trying to back out of for months. Musk has now made three formal attempts to get out of the deal, arguing that Twitter violated the terms of the Merger Agreement. First his arguments focused solely on the platform’s bot data. Now, however, they have expanded to include a $7 million settlement paid to former company executive and whistleblower Peiter “Mudge” Zatko. Musk’s legal team claims the payment conflicts with an opt-out clause in the Agreement. But Twitter has repeatedly denied Musk’s claims and their connection to the market. The company continues to push to get the deal done and is suing Musk in Delaware court to try to force the issue. The Merger Agreement requires Musk to vote his shares in favor of his own purchase. However, as of Monday, the WSJ reported that Musk still had to do it and probably wouldn’t. Since Tesla’s CEO claims that Twitter has already violated their agreement, it would make sense for him to act as if the agreement is void and not vote at all. Twitter shareholders have spoken. Now, the only questions that remain are those surrounding Musk’s attempt to back out of the deal and whether Twitter’s ongoing lawsuit against the world’s richest man will favor the company or the billionaire. This story will be updated after Twitter’s shareholder meeting. Update 9/13/2022, 1:20 p.m. ET: This post has been updated with additional information from a shareholder meeting on Twitter.
