Twitter Inc. TWTR shareholders approved on Tuesday Elon Musk’s $44 billion deal to privatize the company.

What happened: The approval now gives Twitter and Musk the green light to face Loup Funds in the Delaware court on Oct. 17. Gene Munster said. The focus of the lawsuit will be the billionaire’s counterclaim regarding the bot account cover-up, he added.

Twitter whistleblower Pieter Zatkos Allegations he revealed at the congressional hearing could also be part of the process, the venture capitalist said.

As for whether the deal goes through, Munster said, “I’m leaning towards no as Musk is paying a billion-dollar walk-away fine.”

See also: Twitter whistleblower opens new can of worms: A Chinese spy on a company’s payroll?

future fund gary black, Meanwhile, Zatko’s testimony didn’t say much to support Musk’s argument that Twitter intentionally misrepresented the number of bots as a percentage of monetizable daily active users.

“His testimony painted more of a picture of incompetence at the top and a company with gaping security holes,” he said.

The two sides are likely to reach an agreement rather than “risking all or nothing” in the process, he added.

Now that Twitter shareholders have approved the $54.20 per share deal, the company’s board of directors can’t accept much less than $54.20 without incurring shareholder liability, Black said.

Why It Matters: Tesla Inc. TSLA Shares are likely to rise 5-10% if Musk seals the deal for just $52 per share as the billionaire’s need to sell more Tesla shares fades and the ongoing bad press surrounding the process increases end is coming.

Price promotion: According to Twitter, Tuesday’s session closed up 0.80% at $41.74 Benzinga Pro data.


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