Twitter shareholders approved this Tuesday (13) the sale of the social network to Elon Musk. The outcome of the deal, however, will be defined in a legal battle between the company and the billionaire, who in July withdrew from going ahead with the acquisition.
This Tuesday was the deadline for shareholders to vote on the deal, which for Twitter must be fulfilled by Musk. In April, the company’s board of directors approved the billionaire’s $44 billion purchase of the company.
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Shareholders were already expected to vote in favor, after a drop in Twitter shares made Musk’s bid well above the company’s market value. In April, he offered $54.20 a share of the company, which currently sells on the stock exchange for about $41.
The businessman claims that he decided to leave trading because he was misled about the amount of fake and spam accounts on the platform. He also alleges that he was not informed about a salary agreement the company reached with one of its top executives.
Judgment of the dispute between Twitter and Musk will take place on October 17, in the Delaware Court of Chancery. The process was opened by the social network, which accuses the businessman of having breached the agreement.
Musk has been questioning the platform about the number of fake and spam accounts since before he formally asked to withdraw from trading.
In May, he announced that the deal was temporarily on hold because he had not received the necessary information about the plethora of fake accounts. In June, he again threatened to withdraw from the negotiation for the same reason.
The social network says fake profiles make up less than 5% of its 229 million user base, which would represent about 11 million at most. The businessman says that the platform has 65 million fewer users than he advertises.
“Musk’s advisors’ preliminary analysis of the information provided by Twitter to date makes Musk strongly believe that the protection of fake and spam accounts included in the reported user count is much higher than 5%,” the billionaire’s lawyers said in a statement. July in a letter sent to the SEC, the American body equivalent to the Securities and Exchange Commission.
The agreement signed in April provides that Musk would pay a fine of US$ 1 billion (R$ 5.2 billion) if he broke the contract or if the deal became a legal dispute. The company may also be required to pay the same termination fee to the billionaire under specific circumstances.