Twitter board OKs Musk’s buyout bid worth $44bn

Twitter’s board of directors has unanimously recommended that shareholders approve the proposed $44 billion sale of the company to billionaire Tesla CEO Elon Musk, Elon Musk, according to a regulatory filing on Tuesday.
Musk reiterated his desire to move forward with the acquisition last week during a virtual meeting with… Twitter employeesalthough shares of Twitter well below its bid price, suggesting major doubts as to whether it will happen.
Shares were up about 3% to $39 before the opening bell on Tuesday, much less than the $54.2 Musk bid for each share. The company’s stock last hit that level on April 5 when it offered Musk a seat on the board before he offered to buy all of Twitter.
In a filing with the US SEC on Tuesday describing a nest of investors, Twitter’s board of directors said it “unanimously recommends that you vote (for) approval of the merger agreement.” If the deal were closed now, investors in the company would cash in earnings of $15 per share.
Musk said there were unresolved issues, including the debt part and spam users. “We’re still waiting for a fix, and that’s a very important thing,” he said, reiterating his doubts about Twitter’s claims that spam accounts accounted for less than 5% of the daily active users to monetize.

Leave a Comment

Your email address will not be published.