Elon Musk’s $44 billion Twitter deal gets board endorsement

Mr. Musk reiterated his desire to move forward with the acquisition last week during a virtual meeting with Twitter employees

June 21, 2022 06:35 pm | Updated 06:37 pm IST - NEW YORK:

Elon Musk’s Twitter profile is seen on a smartphone placed on printed Twitter logos.

Elon Musk’s Twitter profile is seen on a smartphone placed on printed Twitter logos. | Photo Credit: Reuters

Twitter’s board has recommended unanimously that shareholders approve the proposed $44 billion sale of the company to billionaire and Tesla CEO Elon Musk, according to a regulatory filing on Tuesday.

Also read:A timeline of billionaire Elon Musk’s bid to control Twitter

Mr. Musk reiterated his desire to move forward with the acquisition last week during a virtual meeting with Twitter employees, though shares of Twitter remain far below his offering price, signaling considerable doubt that it will happen.

Shares rose about 3% to $38.98 before the opening bell on Tuesday, far short of the $54.20 per-share that Mr. Musk has offered for each share. The company’s stock last reached that level on April 5 when it offered Mr. Musk a seat on the board before he had offered to buy all of Twitter.

In a filing with the U.S. Securities and Exchange Commission detailing on Tuesday detailing a litter to investors, Twitter’s board of directors said that it “unanimously recommends that you vote (for) the adoption of the merger agreement.” If the deal were to close now, investors in the company would pocket a profit of $15.22 for each share they own.

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