According to a regulatory filing made on Tuesday, Twitter’s board of directors has unanimously recommended that the business’s shareholders accept the planned sale of the firm to billionaire and Tesla CEO Elon Musk for the amount of $44 billion. During a virtual meeting with Twitter employees last week, Musk reaffirmed his intention to move forward with the acquisition. Despite this, shares of Twitter continue to trade at a significant discount to his offering price, which indicates that considerable doubt exists regarding the likelihood that it will occur.
During his appearance at the Qatar Economic Forum on Tuesday, Elon Musk gave an interview to Bloomberg in which he mentioned the ratification of the purchase by shareholders as one of numerous “unresolved concerns” relating to the acquisition of Twitter. The price per share of Twitter Inc. was almost unchanged immediately before the opening bell on Tuesday, and it was far lower than the $54.20 that Musk has promised to pay for each share individually.
The stock price of the firm had not been at that level since April 5, when the company made an offer to Elon Musk to give him a seat on the board of directors before he made his bid to purchase Twitter in its entirety.
In a document that was submitted to the United States Securities and Exchange Commission on Tuesday, Twitter’s board of directors stated that it “unanimously recommends that you vote (for) the adoption of the merger agreement.” This recommendation was made to investors in a letter that was sent out on Monday. If the transaction were to be finalized right now, shareholders in the firm would each be entitled to a profit of $15.22 for each share that they now possess.