Twitter shareholders approve Musk’s $44 billion takeover bid | Social Media News

The vote hands over the outcome of the deal to a US court battle between the social media giant and Tesla CEO Elon Musk.

Twitter shareholders have approved Tesla CEO Elon Musk’s $44 billion bid to buy the company, leaving the outcome of the deal to a looming court battle over the purchase of the social media giant by the billionaire.

The count came on Tuesday at a shareholders’ meeting that lasted just a few minutes, with most votes cast online.

Musk said in July that he was ending the deal to buy Twitter, accusing the company of failing to provide information about fake accounts or spam on its platform.

Twitter denied his claims and filed a lawsuit asking a Delaware court to hold Musk to the deal. A trial is scheduled for next month.

“Musk apparently believes that he – unlike all other parties subject to Delaware contract law – is free to change his mind, destroy the company, disrupt its operations, destroy shareholder value and s ‘go away,’ the Twitter lawsuit reads.

Twitter’s board unanimously agreed to sell the platform to Musk for $44 billion in April, in a deal that has sparked controversy and free speech questions and misinformation on the popular social media platform.

But months later, Musk’s lawyers say Twitter failed or refused to respond to multiple requests for information about so-called “spam bot” accounts, which is fundamental to performance. company business – and they backed out of the purchase.

“At times Twitter has ignored Mr. Musk’s requests, sometimes it has dismissed them for reasons that seem unwarranted, and sometimes it has pretended to comply while giving Mr. Musk incomplete or unusable information,” they said. in a July filing in the United States. States Securities and Exchange Commission (SEC).

The company has said for years in regulatory filings that it believes about 5% of accounts on the platform are fake.

If Twitter wins at trial, the judge could order the Tesla chief to pay the company billions of dollars, or even complete the purchase.

As the court date approached, Musk sought to use revelations from a whistleblower on Twitter to justify dropping his bid.

In his report on the company’s alleged security vulnerabilities, Peiter Zatko directly references Musk’s questions about bot accounts, saying Twitter’s tools and teams to find such accounts are insufficient.

Zatko testified before a US congressional committee on Tuesday, accusing the company of “misleading the public, lawmakers, regulators and even its own board of directors” and failing to protect user data.

“They don’t know what data they have, where it is and where it comes from and so, unsurprisingly, they can’t protect it,” Zatko told lawmakers. “It doesn’t matter who has the keys if there are no locks.”

Twitter dismissed claims by Zatko, the former corporate security officer who was fired earlier this year, as “a false narrative… riddled with inconsistencies and inaccuracies” and lacking important context.

The company also said Zatko was fired for “ineffective leadership and poor performance”, and that his allegations appeared designed to harm the company.