Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Benzinga
Benzinga
Business
Shivdeep Dhaliwal

Elon Musk's Takeover Set To Get Twitter Shareholder Approval By 'Wide Margin' Today: Report

Shareholders of Twitter Inc (NYSE: TWTR) are likely to approve the $44 billion takeover led by Tesla Inc (NASDAQ: TSLA) CEO Elon Musk — a proposal the billionaire entrepreneur is no longer keen on seeing through. 

What Happened: Early trends indicate investors approving the deal by a wide margin, according to a Wall Street Journal report, which cited people familiar with the matter. The shareholder meeting is scheduled for Tuesday at 1 p.m. EDT, according to the Journal.

Musk, the largest shareholder in the Jack Dorsey-founded platform, has not yet voted his shares as of Monday afternoon and was unlikely to do so, according to the report.

Other large shareholders of Twitter, including index-fund managers who have a 20% stake, are reportedly inching towards supporting the deal.

See Also: How To Buy Twitter (TWTR) Shares

Why It Matters: In July, Twitter sued Musk to force a buyout after he walked away from the take-private deal.

The same month, Musk terminated the deal, saying that Twitter failed to provide data on monetizable daily active users that could help gauge the number of spam accounts. 

Meanwhile, whistleblower Peiter Zatko, who accused Twitter of failing to protect sensitive user data and lying about its security problems, will testify before the Senate tomorrow.

Musk's legal team has argued that Zatko's claims could support its allegations against Twitter.

"With the Musk camp now being allowed to include the Zatko claims in its testimony for Delaware, tomorrow's hearing will be closely watched by the Street," Wedbush analyst Dan Ives said in a note.

Price Action: On Monday, Twitter shares closed 1.7% lower at $41.48 in the regular session and gained 0.2% in extended trading, according to data from Benzinga Pro.

Read Next: Twitter Asks Elon Musk: Who Did You Chat With About Buyout? The List May Be Longer Than We Thought

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.