Fallout from Elon Musk’s attempt to buy Twitter continues.
The billionaire pulled out of the deal for a myriad of reasons.
But Musk’s Twitter deal just had another swerve.
Elon Musk set social media on fire when he announced that he intended to purchase Twitter and take the company private.
His stated reason was that the platform no longer upheld a culture of free speech.
In fact, a high-level employee at the company admitted as much on candid camera.
Twitter Senior Engineer Siru Murugesan told an undercover journalist, “Twitter does not believe in free speech…Elon believes in free speech…Our jobs are at stake. He’s a capitalist and we weren’t really operating as capitalists, more like very socialist. Like, we’re all like commie as f**k.”
However, Musk pulled out of the deal because he claims that Twitter is not being honest about the number of fake accounts on the platform; Twitter says only 5% of the accounts are fake, but Musk believes the number could be as high as 33%.
With no way of being able to verify the number of real daily active users, Musk believed that he would not be able to properly value the company.
Twitter sued Musk in order to get the $44 billion it had agreed upon.
Now, Twitter shareholders are officially approving the Musk deal, hoping to push the courts to force the sale to go through.
The Wall Street Journal reported that “Twitter shareholders are poised to approve the $44 billion takeover that Elon Musk is now trying to exit, according to people familiar with the matter, putting the deal’s fate in a Delaware judge’s hands as the social-media company tries to force the billionaire to follow through with the purchase in court…Mr. Musk, the company’s largest shareholder with a roughly 10% stake, hadn’t voted his shares one way or another as of Monday afternoon and was unlikely to given that he has alleged that Twitter breached the merger agreement, some of the people said. The agreement requires Mr. Musk to vote his shares in favor of the deal, though his support isn’t crucial if enough other investors back it.”
Musk agreed to buy the company at a premium of $54.20 per share.
Twitter closed at the beginning of this week at $41.41.
That means the shareholders would make a boatload of money on the deal if it were to go through at $54.20.
Legal analysts believe that Musk will not be forced to purchase the company, but Twitter shareholders are eager.
They likely know Twitter is worth nowhere near $44 billion.
Stay tuned to Unmuzzled News for any updates to this ongoing story.