HomeInvesting NewsTwitter Stock Revamps Upwards as Shareholders Okay Musk Purchase

Twitter Stock Revamps Upwards as Shareholders Okay Musk Purchase

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Twitter (NYSE:TWTR) 

The $44 billion sale of Twitter (NYSE:TWTR) to billionaire Elon Musk has been approved by the company’s shareholders, a seemingly inevitable outcome that is now merely another milestone as the deal moves closer to a mid-October trial date to determine whether it can be finalized. At a special shareholder meeting on Tuesday, the business declared that it had received enough votes to approve the deal while voting was still open.

Competitors in the Communication Services sector, including Google (GOOG) (GOOGL), Meta (NASDAQ:META), Snap (NYSE:SNAP), and Pinterest (NYSE:PINS) all experienced significant losses (down 4%, 8%, 7%, and 5%, respectively) on a day dominated by a shaky inflation report. 

They began rising after a prominent Senate hearing featuring Peiter “Mudge” Zatko, a former TWTR employee, focused on social media security and ended up making no mention of the spam/bot problem that Musk has made the centerpiece of his attempt to cancel the $44 billion transaction.

In support of his third justification for leaving TWTR, Musk mentioned a $7.75 million settlement payment made to Zatko. Twitter (NYSE:TWTR) declared that the most recent Musk letter was invalid on Monday. A billionaire, Elon Musk, offered a $44 billion purchase of Twitter Inc., and the company’s shareholders accepted it, setting up a trial for next month to decide the fate of the contentious deal.

Twitter Stock Purchase Price

A majority of Twitter shareholders voted in favor of accepting the $54.20-a-share bid to acquire the social-networking business, according to a preliminary vote tally read on Tuesday. In April, Musk made the offer, and since then, he has sought to revoke it. The board of Twitter, along with two well-known advisory companies, had urged stockholders to approve the purchase. The vote had no impact on the company’s shares, which are currently trading at $41.77, significantly below Musk’s suggested price.

Voting took place for roughly 3 minutes during the shareholder meeting, which lasted 7 minutes. Additionally, votes might be sent by shareholders weeks before the meeting.

Although shareholder approval was necessary to complete the deal, its completion is far from guaranteed. By claiming that Twitter misled him about the size of the company’s user base and the number of bots and spam accounts, Musk announced in July that he was canceling the arrangement. These allegations are untrue, and Twitter sued Musk in Delaware to compel him to finish the deal. The corporation was then sued again by Musk.

Featured Image-  Megapixl @Vladsseven

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