Twitter board approves Elon Musk takeover for $44 billion


According to a filing with the US Securities and Exchange Commission (SEC), Twitter’s board of directors has unanimously recommended that shareholders approve the sale of the company to Elon Musk for $44 billion. of dollars. The CEO of Tesla and SpaceX reached an agreement last April to acquire the social network. The board says it has ”
determined that the merger agreement is desirable and that the merger and other transactions contemplated by the merger agreement are fair, advisable and in the best interests of Twitter and its shareholders.
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The mail to the SEC does not specify when the vote will take place, but Bloomberg reports that it could come in late July or early August. Although Twitter’s share price has fallen significantly from the $54.20 per share originally offered by Elon Musk, Musk confirmed his intention to enter into the deal during a meeting with Twitter employees. last week. On this occasion, the billionaire reportedly said he wanted to reach one billion users.

A lower purchase price?

The recommendation of the board of directors is not a surprise, since it had already approved the operation, but it is the last stage of an ongoing process which has known its share of twists and uncertainties. Elon Musk previously threatened to pull out of the deal if Twitter could not provide evidence that less than 5% of the platform’s accounts were bots. He then accused Twitter of ” actively resist and thwart his request for information about fake accounts. The social network would have finally agreed to provide this data.

In an interview with Bloomberg during the Qatar Economic Forum, Elon Musk explained that the issue of fake accounts and shareholder approval are two of three issues that need to be resolved before the deal can close. The third point is whether the debt part of the operation will be validated, he added.

Elon Musk also said he was open to renegotiating the terms of the deal, saying a price drop is not ” out of the question “. For its part, Twitter has indicated that it does not intend to renegotiate the current agreement.

CNET.com article adapted by CNETFrance

Image: Sarah Tew/CNET

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