Twitter shareholders approve the proposed $44 billion acquisition by the world’s richest man Elon Musk on Tuesday. The acquisition was cleared by a wide margin with most shareholders voting for the deal that Musk himself now seeks to scrap. The approval came in at a time when Musk’s legal team is in a court battle to get out of the deal after the micro-blogging platform has sued Musk for allegedly breaching the deal agreement.
$44 billion acquisition deal
After proposing a buyout of Twitter on April 25, Musk has filed several requests to terminate the $44 billion acquisition agreement. Twitter filed a lawsuit against the billionaire for walking away from the proposed deal. Tesla’s chief executive countersued, accusing the platform of misrepresenting the number of false and spam accounts on its service. The approval means that Twitter will continue with the lawsuit with the trial scheduled to begin next month in the Delaware Court of Chancery.
The development also comes at a time when a Twitter whistleblower testified at a US Senate committee. The former head of security, Peiter ‘Mudge’ Zatko made some astonishing revelations about security, privacy, and data protection among other concerns at the company. In its complaint, Zatko has said that the social media firm had misled or intended to mislead regional oversight bodies over its compliance with local laws.
Earlier, Musk has said that the testimony of the Twitter whistleblower justifies his termination of the $44 billion acquisition deal. However, reports suggest that the social media platform will call these allegations made up, forcing Elon Musk to buy the company.”Twitter will push to close the deal regardless, alleging that Musk’s complaints are merely a pretext for backing out,” The Verge report mentioned.