Twitter’s shareholders voted to reiterate their desire to see the social media giant sold to Elon Musk according to the terms of the $44 billion acquisition deal struck earlier this year. Meanwhile a former employee testified before the US Senate regarding security and privacy vulnerabilities he witnessed when he worked for the company.
On Friday, Musk cited the revelations by the former head of security for Twitter, Peter Zatko, in a letter he filed seeking to cancel the purchase. Musk’s letter made the claim that a $7.75 million payment made to Zatko by Twitter, as part of a severance package, was a violation of the terms of the acquisition deal. In a response, the company called his allegations, “invalid and wrongful.”
In Tuesday, Twitter’s stock was priced at $41 per share, roughly 25% below the $54.20 price per share Musk had agreed to pay in his original deal.
Musk first proposed buying Twitter’s shareholders out in April, as he castigated the company for constraining free speech. The company was initially hostile to the proposal. However as shareholders weighed on the company’s leadership, and it eventually came around to agree to the proposal, Musk came to believe the company’s data showed Twitter had far fewer Daily Monetizable Users than it had represented, and far more bots and spam accounts than it disclosed.
At that point Musk sought to back out of the deal, and Twitter filed suit in a Delaware Court of Chancery seeking to force Musk to follow through on the purchase.
Musk’s lawyers have drafted three letters to Twitter, seeking to extricate him from the agreement, alleging the company misled him about the nature of its daily user accounts, and failed to share sufficient data with him to value the company and perform due diligence.
The company denies all charges.
The trial on the matter is set for October 17th.