Twitter board requests shareholder approval of Elon Musk’s $44 billion offer


Musk’s bid for Twitter would net each shareholder $54.20, above the current share price of $38.

A 21 June SEC filing reveals that Twitter’s board unanimously proposes that shareholders approve Elon Musk’s $44 billion deal to acquire the social media business.

According to the document, Musk’s bid for Twitter would net each shareholder $54.20, which is more than the current share price of $38.

The board has asked shareholders to vote in favour of the merger agreement, the executive officer compensations, and the postponement of the meeting owing to insufficient votes.

In the meanwhile, the merger deadline is October 24, although a date for shareholder voting has not yet been determined.

Elon Musk’s interest in Twitter has met a hurdle, as the world’s wealthiest man asked that the social media network be more honest about the number of bot accounts on its platform.

Musk recently had a virtual chat with Twitter staff, suggesting that these difficulties are no longer an issue. During the discussion, he alluded to the possibility that the platform may include a payment mechanism that facilitates bitcoin transactions.

Several experts believe the virtual meeting is the most recent indication that Elon Musk is committed to closing the transaction.

Who benefits from the acquisition?

If the shareholders approve the takeover proposal at the present value of Twitter shares, each shareholder would get around $15 for each share of the company’s stock they possess.

This implies Twitter co-founder Jack Dorsey, who holds 18,042,428 shares, would get $978 million from the sale. The Vanguard Group, Morgan Stanley, and BlackRock would receive $4.4 billion, $3.6 billion, and $2.8 billion respectively.

In addition, key Twitter executives, such as CEO Parag Agrawal and CFO Ned Segal, may earn up to $42 million and $25 million, correspondingly. This is because a “change in control” provision in their contract permits them to receive a substantial severance payment if they are let go within 12 months of new ownership.

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