Shareholders of Twitter Inc TWTR are likely to approve the $44 billion takeover led by Tesla Inc 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.
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