Twitter in the world of politics and business

Twitter in the world of politics and business

Twitter shareholders will vote on Tuesday to approve or reject Elon Musk’s $44 billion takeover offer, while Twitter whistleblower Peter “Mudge” Zatko will testify before the US Senate Judiciary Committee.

Between the lines: The two events are officially unrelated, but there is a running line with Musk hoping that Zatko will become his Get Out Of Deal Free card.

Voting: Twitter needs a simple majority of shareholders to definitively support the merger.

  • Approval is taken for granted at $54.20 per share, a 30% premium over where the stock is currently trading and a 38% premium over where it was before the deal was announced.
  • One wrinkle, however, is that Musk is the largest outside owner of Twitter with a 9.6% stake, and is almost certain to hold back on his shares. It will be interesting to see if Musk has succeeded in persuading any other major shareholders, such as Saudi billionaire Alwaleed bin Talal Al Saud (3.9%) or former Twitter CEO Jack Dorsey (2.4%).

Certificate: Zatko takes his seat at 10 a.m., likely focusing on national security and Zatko’s claim that Twitter violated a 2011 settlement with the Federal Trade Commission and the Department of Justice (expect these agencies will pay close attention).

  • It is also possible that some senators will benefit Musk by requesting information on bots, ZATCO’s takedown package, or some other subject that he may find difficult to obtain. Remember that Musk is allowed to include Zatko’s allegations in an amended complaint, but he is limited when it comes to gathering new information.
  • According to the court ruling last week: “Only the accused are allowed additional discovery relevant to the new allegations. Such discovery can be achieved through discovery of targeted documents and a minimum of additional experts and witnesses to the facts.”

Bottom line: What might Zatko say on Tuesday to help (or hurt) Musk? Who do you know? That’s why it will be showing appointments.

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