Twitter Inc. shareholders on Tuesday approved Elon Musk’s $44 billion deal to take the company private.
What Happened
The approval now gives Twitter and Musk the greenlight to face off in the Delaware court on Oct. 17, Loup Funds’ Gene Munster said. The focus of the trial would be on the billionaire’s counterclaim regarding the bot account coverup, he added.Twitter whistleblower Pieter Zatko’s allegations, which he revealed at the Congressional hearing, could also be part of the trial, the venture capitalist said.
On whether the deal will go through, Munster said, “I’m leaning towards no, with Musk paying a multi-billion walk away penalty.”
Future Fund’s Gary Black, meanwhile, said Zatko’s testimony didn’t offer much to bolster Musk’s case that Twitter deliberately misstated the bot count as a proportion of the monetizable daily active users.
“His testimony more painted a picture of incompetence at the top and a company with gaping security vulnerabilities,” he said.
The two sides are likely to reach a deal rather than “risk all or nothing” at the trial, he added.
Now that Twitter shareholders have approved the $54.20 per share deal, the company’s board cannot accept much below $54.20 without facing shareholder liability, Black said.
Why It’s Important
Tesla Inc. shares will likely increase 5–10 percent if Musk seals the deal at even $52 per share, as the need for the billionaire to sell additional Tesla shares disappears and the ongoing bad press surrounding the trial comes to an end.By Shanthi Rexaline
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