Twitter board endorses Elon Musk's $44 billion deal
- Twitter board recommended shareholders vote in favour of sale of the company
- Elon Musk is set to buy Twitter for $44 million
- Twitter was founded in 2006
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 Tuesday.
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.
On Tuesday at the Qatar Economic Forum in an interview with Bloomberg, Musk listed the approval of the deal by shareholders as one of several "unresolved matters" related to the Twitter deal.
Shares of Twitter Inc. were essentially flat just before the opening bell Tuesday and far short of the $54.20 per-share that Musk has offered to pay for each. The company's stock last reached that level on April 5 when it offered 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.
Elon Musk, 50, the world's richest man, has been vying to buy the social media giant for months. The Tesla CEO has already decided on a number of changes he would like to bring to the company if and when he manages to acquire it.
Twitter, founded in 2006 by Jack Dorsey, Noah Glass, Biz Stone and Evan Williams, has emerged as the social media site of choice for world leaders. As such, despite not being the biggest social media company in the game, Twitter's impact on the lives of people far outstrips any other social network.