Twitter’s board considers Elon Musk’s proposed deal to buy the platform to be fair and in the best interests of Twitter and its stockholders, so it has recommended that shareholders approve the $44 billion sale to the billionaire businessman, the latest regulatory filing to US Securities and Exchange Commission has shown on Tuesday
The filing said Twitter’s board of directors unanimously determined that the merger agreement is advisable, fair, and in their best interests, and recommended that shareholders vote for its adoption.
The board has also recommended soliciting additional proxies during the special meeting if there are insufficient votes to adopt the merger agreement.
After announcing in April his $44bn offer to buy Twitter, Musk said last month that the deal, which was supposed to be finalized by the end of this year, had been temporarily put on hold pending details on the number of fake accounts on the site.
Stressing that the deal could not move forward unless Twitter provided proof that less than 5% of its users were fake, Musk entered into a very public spat with Parag Agrawal, Twitter’s chief executive, over the platform’s estimates of spam accounts.
Since the start of this year, the share price of the microblogging site’s been down more than 10%, trading at $38.5 a share – up almost 1.9% – on Tuesday.
Tesla’s chief executive confirmed last week – during a meeting with Twitter staff – that he wants to increase the current number of users of the platform from 229 million users at present to at least one billion people.
Musk confirmed during his address at the Qatar Economic Forum that the deal to buy Twitter continues to face unresolved matters, but if he’s to abandon the agreement, he will have to pay a $1bn break-up fee to the social media company.