Twitter’s board of directors unanimously endorsed Elon Musk‘s $44 billion offer to buy the social media company and take it private.
“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,” has unanimously: (1) 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; and (2) adopted and approved the merger,” the company said in a filing with the Securities and Exchange Commission.
Under Musk’s proposal, shareholders would get $54.20 per share. On Friday, Twitter’s stock closed at $38 and was relatively flat in early trading on Tuesday. If the deal closed today, investors would net a profit of $15.22 per share.
While the deal is expected to close in 2022, it is still not finalized. Musk is still in a dispute with Twitter over the number of spam and bot accounts on the platform. The issue over fake accounts could scuttle the deal as Musk has voiced concerns that the social media company has not provided accurate information about the number of real users that are on the platform.