Twitter Board Unanimously recommends Musk’s Takeover Bid

The board of Twitter “unanimously recommended” that the $44 billion acquisition of the social media behemoth by Tesla CEO Elon Musk be approved by the company’s shareholders. The Twitter Board unanimously decided that the merger agreement is prudent, the merger and the other transactions contemplated by the merger agreement are fair to, prudent, and in the best interests of Twitter and its stockholders; and (2) adopted and approved the merger, the company said.

The Twitter Board, after considering various factors described in the section of this proxy statement captioned “The Merger—Recommendation of the Twitter Board and Reasons for the Merger.”At $54.20 a share, the deal, which is now anticipated to completion in 2022, would take Twitter private. The file was made at the same time that Musk claimed that shareholder approval was one of three “unresolved concerns” preventing the acquisition from moving forward in an interview at the Qatar Economic Forum on Tuesday.

Musk added that in addition to shareholder approval, the acquisition also needed to secure loan funding. In addition to receiving pledges from Morgan Stanley Senior Funding Inc. and other financial institutions for up to $13 billion in loan financing, the billionaire has promised $33.5 billion in equity investment. The total amount of spam and fraudulent accounts on the network, which he termed “a very serious subject,” was another issue that he said he was waiting for Twitter to resolve. Musk thinks the percentage is at least 20%, despite Twitter’s insistence that spam and bogus accounts account for fewer than 5% of its users.

Musk allegedly threatened to back out of the contract earlier this month, but Twitter apparently agreed to give him access to a “firehose” of data. By “actively rejecting and blocking” his entitlement to information on the spam and phoney account data, he said that the corporation had violated its commitments under the merger agreement.