Twitter shareholders approve sale of company to Elon Musk

The imbroglio of giving up the purchase of Twitter by Elon Musk has taken on a new development. This Tuesday (13), the majority of the social network’s shareholders voted for the definitive sale to the billionaire, valued at US$ 44 billion.

Twitter is suing Musk for understanding that the cancellation of the agreement, decided by him in July, is “invalid and illicit”. The destination of the purchase and sale will be defined in court from October 17th.

Yesterday (12), the Reuters news agency and the Wall Street Journal had already anticipated the preliminary result of the shareholders’ vote. This afternoon, the final result was confirmed.

Why Musk backed out of the purchase

After announcing that he would buy Twitter for a billionaire value, in April of this year, Elon Musk decided to ask for data from the platform about the existence of spam accounts and robots (known as bots).

At the time, Twitter responded by stating that accounts within that profile are less than 5% of the total — among its 229 million active users in the first half of the year. However, the businessman wanted more evidence and detailed information.

Upon the company’s return, Musk said the social network “has failed to fulfill its obligations” in the agreement, adding that Twitter has not clearly reported the total number of fake accounts among its users.

New legal weapons for Musk

At the end of August, Elon Musk received new weapons for the legal dispute with Twitter. Peiter Zatko, former head of security for the social network, said the company lied to the entrepreneur about the social network’s ability to detect fake profiles – the so-called bots (robots).

According to him, Twitter does not even have the necessary tools to assess the impact of these fakes. That is, one more concrete reason for Musk to convince the justice that he cannot fulfill the purchase agreement.

On August 30, the businessman’s legal team indicated that the “flagrant deficiencies” pointed out by the former Twitter employee in the platform’s defense system against hackers and in the protection of users’ privacy are proof that the company violated the agreed conditions. with the billionaire.

In light of Zatko’s allegations, a Twitter spokesperson countered criticism of the platform’s security. He went so far as to say that the allegations were “full of inconsistencies and inaccuracies”.

The judgement

The case between Musk and Twitter will be tried in the Court of Chancery in Delaware (USA). It is expected to last five days.

The billionaire’s wish was for the trial to be postponed to February 2023. Twitter wanted it to be in September.

zatko will be summoned to testify in the process, in addition to more than a hundred others involved, which include individuals, banks, investment funds and other institutions.

Legal experts say one needs to be careful with accusations, which still lack evidence to be considered as concrete arguments.

“It’s certainly not ideal for Twitter that a former employee is making statements like these right now, and they increase the risk for the company overall. But going into the details, they don’t give me reason to believe that Musk gained an advantage,” said Matthew Schettenhelma Bloomberg litigation analyst interviewed by Business Insider at the time.

But even if Musk hasn’t increased his chances of winning the legal dispute, he may be favored. According to another legal expert, Erik Gordon, a professor at the Ross School of Business, may find Twitter more profitable to strike a deal with the businessman than to take the case to the extreme.

*With information from Reuters and an article by Aurélio Araújo, in collaboration with Tilt.

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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