Twitter considers that the money it paid to a reporter once morest it “does not violate any terms” in its $44 billion purchase with Elon Musk.
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Twitter’s stock fell nearly 2% following Elon Musk pulled out of the deal
Twitter Inc said Monday that payments it paid to a whistleblower “does not violate any terms in its $44 billion purchase of Elon Musk,” the world’s richest man, following the American billionaire made a fresh attempt to cancel the deal.
In a letter to Twitter on Friday, Musk’s lawyers said that Twitter’s failure to obtain his consent before paying the $7.75 million to whistleblower Peter Zatko and his attorneys violated a takeover agreement that limits when Twitter can pay such payments.
Twitter’s lawyers responded on Monday, saying that Musk’s withdrawal from the deal was “null and unfair.”
The value of the social media company’s stock fell nearly 2% to $41.37, well below Musk’s $54.20 bid per share.
The response to the lawyers’ letter regarding Musk comes before a special meeting to be held, tomorrow, Tuesday, in which shareholders will vote on the deal.
and last month, Zatko accused Twitter, following being fired as its chief of security in January, said the company did not have a solid security plan and accused it of making misleading statements regarding its defenses once morest hackers and fake accounts on its online platform.
Musk, who also heads electric car maker Tesla, accused Twitter of misrepresenting the truth when it revealed fake or bot accounts on the platform, and sought to break the deal on those grounds.
The author will meet with the Senate Judiciary Committee, tomorrow, Tuesday, to discuss his charges.
Twitter’s case, which seeks to compel Musk to acquire it, is due to be heard on October 17 in a Delaware court.
