Twitter Board ‘Unanimously Recommends’ Elon Musk’s Bid to Purchase Company

Elon Musk’s bid to buy Twitter for about $ 44 billion has been pending since April for a number of reasons, one of which is that Musk needs shareholder approval to close the deal.

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Things seem to be moving forward. A new filing with the SEC on Tuesday revealed that the Twitter board unanimously agreed to urge shareholders to approve the pending deal.

“The Twitter Board of Directors, after considering the factors described in more detail in the attached power of attorney, unanimously: (1) determined that the merger agreement is advisable and that the merger and other transactions covered by the Merger Agreement are fair, advisable and in the best interests of Twitter and its shareholders, and (2) adopted and approved the Merger Agreement, Merger and other transactions covered by the Merger Agreement. “says the file.

Related: Elon Musk offers to buy Twitter for 43 billion dollars: “It’s a high price and your shareholders will love it”

Musk himself is currently the majority shareholder in Twitter, with approximately 10% of the company’s shares.

The Board’s unanimous decision is not unexpected: Board members also voted unanimously to accept Musk’s initial offer to buy Twitter in April.

The billionaire then agreed to buy the company for $ 54.20 per share in cash, and all shareholders would receive $ 54.20 in cash for each of their shares if the deal is closed.

Twitter would also become a private company under Musk.

The exact date and time of the shareholders’ meeting were not disclosed in the document, although Twitter CEO Parag Agrawal has said the deal is expected to close later this year. , while others believe that the meeting could take place as soon as the end. July.

Related: It’s official: Elon buys Twitter

Musk was criticized by Twitter shareholders in a class action lawsuit last month.

The legal document alleges that Musk violated corporate laws by delaying his disclosure of how many Twitter shares he actually had before bidding to buy the company, as well as claiming that the billionaire had inside information before buy these stocks through conversations I had. with Twitter board members and executives.

Aside from the shareholder vote, Musk will also have to provide proof of funding for the deal to close.

As of Wednesday afternoon, Twitter shares were down nearly 39% in a one-year period.

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