Billionaire Elon Musk is still trying to pull out of his deal to buy Twitter with a lawsuit scheduled for next month.
Tesla’s CEO has been quite vocal about his skepticism about the platform’s bots and spam accounts, claiming that the number of “fake” accounts is higher than reported. He used that to justify pulling out of the $44 billion dollar deal, but it’s up to the judge to make the final decision.
On Tuesday, the company’s shareholders gathered together for a special meeting to vote on whether to approve selling the company to Musk despite his objections… and they did.
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Twitter Shareholders Approve Elon Musk’s Takeover… Even As He Tried To Back Out Of The Deal!
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As noted by The Hollywood Reporter, a special meeting of shareholders took place on Tuesday, September 13. In that meeting, Twitter shareholders approved selling the company to the SpaceX founder for $54.20 a share, which was the initial deal Musk offered to Twitter chairman Bret. Taylor earlier this year.
While the approval was expected, it is an important legal step ahead of next month’s lawsuit, given that regulators have signed off on the deal.
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In April, Twitter’s board agreed to sell the company to Musk just weeks after he became the company’s largest shareholder. The company’s stock has plummeted since then, leading many to speculate that Musk regretted his deal to buy the company.
In July, the billionaire sent a letter to terminate the agreement. Although a billion dollar “breakup fee” was written into the contract, the social media giant claims that the clause does not apply in this case and is seeking a judge in the Delaware Court of Chancery to force Musk to continue with the deal.
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Elon Musk Subpoenas Jack Dorsey As Trial Date Approaches
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In late August, Deadline reported that Musk decided to subpoena Twitter founder and former CEO Jack Dorsey as subpoenas kept flying in on both sides.
The subpoena states that Dorsey “is hereby ordered, all business and excuses waived, to respond in writing to this subpoena and submit for inspection and copying any books, documents, or tangible things in your possession, custody, or control” requested by Musk’s team .
Dorsey is also required to turn over any information about the merger agreement and any documents “reflecting, referring to or relating to the effect or impact of fake or spam accounts on Twitter’s business and operations.”
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It remains to be seen whether Dorsey will be able to hand over any information that will sway Musk — or the judge’s opinion — about bots and spam accounts. In mid-July, Judge Kathaleen McMcormick set a tentative five-day trial scheduled to take place in October.
The social media company originally asked for a hearing to be held this month, while Musk’s legal team argued that they needed to delay the hearing until at least February 2023 to gather enough time to gather all the necessary documents and information.
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Lawyers representing the social media company argued that a delay could cause the company “irreparable harm” and Judge McCormick agreed, scheduling a court date for October 2022. Financial analysts have speculated that it is still possible the two sides will be able to settle the matter. court.
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Source: thtrangdai.edu.vn/en/
