Twitter Shareholders Formally Accept Musk's $44 Billion Offer He's Desperately Trying To Get Out Of - Forbes

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Topline

Twitter shareholders formally voted to accept Elon Musk’s $44 billion offer to take the company private, several outlets reported Tuesday afternoon, a largely expected move that adds to the bizarre, dramatic public showdown between the company and Musk as the world’s wealthiest man exhibits buyer’s remorse.

Key Facts

Twitter announced the vote’s passing in a five-minute investor call, according to CNBC.

The vote nearly passed unanimously, as the company said a preliminary tally revealed 98.6% support.

Reuters and the Wall Street Journal reported Monday night that Twitter received enough votes to pass the measure.

Twitter shares rose .6% to $41.72 in Tuesday trading in an otherwise dismal day for markets.

Key Background

Twitter announced April 25 it agreed to terms with Musk, 21 days after Musk disclosed he became the company’s largest shareholder, potentially setting the stage for a hostile takeover. It was an odd marriage, considering Musk was a harsh critic of the platform’s policies, and the spark between the two quickly flamed out, as Musk filed paperwork July 8 looking to back out of the deal, blaming the presence of spam and fake accounts on the site. Twitter subsequently sued Musk in Delaware’s Court of Chancery to force the deal to go through. Musk’s argument was bolstered last month when Twitter’s former head of cybersecurity Peiter Zatko’s whistleblower complaint went public, alleging the company misled investors and regulators on numerous issues, including user privacy and the presence of bots on the site. A Delaware judge ruled last week that Musk could include information from the whistleblower complaint in his countersuit, though the court denied his request to delay the trial.

Big Number

30%. That’s the premium Musk’s $54.20 per share purchase price represents on Twitter stock’s $41.72 ticker Tuesday. Twitter shares are trading roughly the same price as before Musk disclosed he was buying up the stock, but surged over $50 in April and May before Musk went public with his hesitation.

What To Watch For

Musk and Twitter’s Delaware trial will start October 17 and last five days.

Tangent

Zatko testified Tuesday morning before the Senate Judiciary Committee, elaborating on his whistleblower complaints and their relation to national security. At one point, he told lawmakers a Twitter executive dismissed his concerns about foreign agents being employed by the platform. Sen. Ron Wyden (D-Ore.) told Forbes he was “deeply disturbed” by the testimony.

Forbes Valuation

We estimate Musk is worth $266 billion, about $100 billion more than anyone else. Much of his fortune is thanks to his stake in Tesla, which he leads as CEO. Musk disclosed in August he sold about $7 billion worth of Tesla stock, explaining he needed the cash if unable to back out of the Twitter deal.