Elon Musk must hope for a well-disposed judge in Delaware to avoid having to pay $46.5 billion to take over Twitter. Because on Tuesday, the current Twitter owners approved the purchase agreement concluded with Musk. This decision is anything but unexpected, since Musk offered significantly more than Twitter shares are worth on the stock exchange.
The vote was formally necessary in order to make the purchase agreement valid. Everything is now set for the showdown between Twitter and Musk in the Delaware Court of Chancery starting October 17th. Musk is considered by far the richest man in the world, but even for him $ 46.5 billion is a decent amount of money. And he would like to keep it.
At the end of April, he surprisingly agreed to buy Twitter at a price of USD 54.20 per share without conducting the company’s usual due diligence tests beforehand. Among other things, the multi-billionaire announced at the time that he would solve the spam problem on Twitter as the owner. But after hastily signing the contract, the multi-billionaire lost interest in the project. First, Musk tried to push down the purchase price for Twitter. Without success.
Three resignations rejected
On July 8, he declared his withdrawal from the purchase contract for the first time. The main charge he made was that the company had been spreading incorrect statistics about fake profiles and spam – and Musk wanted to solve exactly this problem. Twitter then sued Musk on July 12 to speed up the takeover. Musk fought in vain against an accelerated trial: The judge dismissed the urgent trial Twitter v. Musk already arranged for October.
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After Twitter’s former security chief made serious allegations about Twitter’s IT security, Musk announced his resignation from the purchase agreement a second time on August 29. Again, Twitter denied the validity of this request.
The man announced his resignation a third time on September 9th. This time, Musk is upset by the million-euro compensation that Twitter paid his former security chief. On Monday, Twitter also denied the third attempt to resign. Musk also failed last week with a motion to postpone the court case. While US stocks generally fell significantly on Tuesday, Twitter stocks rose 0.65 percent to $41.74 in regular trading.
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