Twitter shareholders approve Elon Musk takeover ahead of court battle

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Twitter shareholders on Tuesday approved Elon Musk’s takeover of the social media platform, setting the stage for a tense legal battle as the world’s richest person attempts to evade his deal.

Twitter previously urged investors to greenlight the $44 billion acquisition, which values ​​the company at $54.20 per share, a significant premium to Twitter’s current stock price. Shares opened at $40.76 on Tuesday.

The company said the measure was passed based on a preliminary count and would provide a final vote tally to shareholders at a later date.

Tuesday’s vote in a quick 6-minute meeting is the latest chapter in the complicated Musk-Twitter saga, which started as a surprise takeover bid and turned into a full-blown circus.

After buying some of Twitter’s stock this spring and then offering to take the company private with a group of investors, Musk announced in July that he was canceling his offer to buy the company. He alleges that Twitter misrepresented the number of fake accounts on its platform, which amounts to a violation of their agreement. Musk waived due diligence when making the deal.

Twitter then sued Musk to force him to make the purchase. This trial begins in Delaware Chancery Court on October 17.

To complicate matters further, a recent whistleblower complaint from former Twitter security chief Peter Zatko, who alleged his former employer lied to Musk about bot accounts and had poor security. Twitter dismissed the complaint as inaccurate, but experts told Insider it could give Musk ammunition in his legal battle.

Zatko testifies before Congress on Tuesday.

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