Wednesday, June 22, 2022
The board of directors at Twitter has unanimously "endorsed that shareholders approve the proposed $44 billion sale of the company to Elon Musk", CNET reported, citing the US Securities and Exchange Commission (SEC).
The bid was put forward in April by the billionaire. He had expressed his desire to move forward with the deal with his employees in a virtual meeting. However, there was still doubt whether that would happen since Twitter shares were far below his offering price.
The letter that the board wrote to the investors, which is included in the SEC filing, said that it "determined that the merger agreement is advisable and the merger and the other transactions contemplated by the merger agreement are fair to, advisable and in the best interests of Twitter and its stockholders."
While the letter did not specify when the voting would take place, a Bloomberg report said that it may happen in late July.
Even though Twitter's share fell below $54.20 per share that Musk originally offered, the Tesla CEO remained determined to push through with the deal.
The Twitter board had already approved the deal. Therefore, their recommendation does not come as a shock.
The billionaire had previously warned that he would back out of the deal expressing his concerns regarding fake and spam accounts on the microblogging platform.
He said that Twitter was "actively resisting and thwarting" his request for information about the bots.
Twitter has not given any comments yet.