Company shareholders Twitter Inc. (TWTR) appears poised to vote overwhelmingly to accept the $44 billion offer Elon Musk acquire a social media company. complicates matters Musk tried to rescind his offer, claiming that Twitter misrepresented the number of spam accounts on its platform. Twitter sued Musk to force him to comply with his offer. Twitter’s special meeting of stockholders will be held on September 13, 2022 at 1:00 PM Eastern Time.
Meanwhile, also on September 13, 2022 informant Peiter “Mudge” Zatko, Twitter’s former security chief, will testify before the US Senate Judiciary Committee about various irregularities he says he found at Twitter during his employment there. Especially, Zaťko claims that Twitter has a very lax approach to protecting user data. The hearing begins at 10:00 a.m. ET.
- Twitter (TWTR) shareholders appear to be overwhelmingly in favor of Elon Musk’s $44 billion takeover offer.
- Meanwhile, Twitter whistleblower Peiter “Mudge” Zatko, its former security chief, testifies before the US Senate about irregularities at the company.
- Both the shareholder vote and the testimony take place on September 13, 2022.
- Zatka’s allegations may bolster Musk’s case for abandoning his bid without significant penalties, potentially sending Twitter shares tumbling.
Consequences of the Twitter Shareholder Vote
Musk pledged to pay $54.20 per share for Twitter in April 2022. This represents a significant premium (30.9%) to the closing price of $41.41 on September 12, 2022. If the deal goes through, it would represent a significant windfall for existing shareholders. On the other hand, if Musk succeeds in his bid without paying a hefty fine, analysts expect Twitter’s stock price to drop significantly.
Potential Impact of Whistleblower Testimony
Whistleblower Zaťek’s testimony may help bolster Musk’s case for backing out of his proposed deal to acquire Twitter. To date, legal experts have tipped Twitter to win the legal battle to force Musk to do his bidding. But even absent Zaťko’s charges, there are also questions about whether a judge would force a reluctant Musk to honor such a big deal. Furthermore, the so-called specific performance the remedy Twitter is seeking has not been tested on such a large scale before.