A majority of Twitter’s shareholders have voted in favor of the social media company’s $44 billion sale to Elon Musk, people accustomed to the tally said on Monday.
The deadline for the shareholder vote on the deal is Tuesday but enough investors had voted by Monday evening for the consequence to make sure, the sources said.
The sources requested anonymity ahead of an official announcement. Twitter and representatives for Musk didn’t immediately reply to requests for comment.
Musk has informed Twitter he is not going to go ahead with the acquisition, arguing he was misled over the spam accounts on the platform and was not notified of a pay settlement the corporate reached with one in all its top executives. The 2 sides are scheduled to battle it out in court next month.
Shareholders were widely expected to vote in favor after a stock market downturn made Musk’s $54.20-per-share deal for Twitter, which was signed in April, look pricey in the present environment. Twitter shares are actually hovering around $41.
Earlier on Monday, Twitter said payments made to a whistleblower didn’t breach any terms of its sale to Musk, after the world’s richest synthetic one other try to scrap the deal.
Twitter’s lawyers said Musk’s reasons for wanting to back out of the deal were “invalid and wrongful.”
Last week, lawyers for Musk said Twitter’s failure to hunt his consent before paying $7.75 million to whistleblower Peiter Zatko and his lawyers violated the merger agreement, which restricts when Twitter could make such payments.
Zatko, who was fired by Twitter in January as the corporate’s security head, accused the social media firm last month of falsely claiming it had a solid security plan and making misleading statements about its defenses against hackers and spam accounts.
The whistleblower will meet the Senate Judiciary committee on Tuesday to debate the allegations.
“With the Musk camp now being allowed to incorporate the Zatko claims in its testimony for Delaware, tomorrow’s hearing might be closely watched by the Street,” Wedbush analysts wrote in a note.
The Twitter vs Musk trial is scheduled to start out on Oct. 17 in Delaware Chancery Court.