(Republican Insider) – Elon Musk’s takeover of Twitter is moving right along. The social media platform’s board of directors unanimously endorsed the Tesla and SpaceX CEO’s $44 billion bid to takeover the company.
The board also recommended that shareholders also vote in favor of Musk’s bid in an upcoming special shareholders’ meeting.
The board specifically requested shareholders to vote for the adoption of the “merger agreement” and “compensation that will or may become payable by Twitter to its named executive officers in connection with the merger, according to filings with the Securities and Exchange Commission from Tuesday.
The board also asked shareholders to vote for “the adjournment of the special meeting, from time to time, to a later date or dates, if necessary or appropriate, to solicit additional proxies if there are insufficient votes to adopt the merger agreement at the time of the special meeting.”
Board members said, if the purchase agreement is finalized, Twitter shareholders would each receive $54.20 per share without interest, according to the Tuesday SEC filing.
Earlier Tuesday, Musk told Bloomberg News Editor-in-Chief John Micklethwait at the Qatar Economic Forum that “unresolved matters” were standing in the way of his purchase of the social media giant.
“There is the question of, will the debt portion of the round come together and then will the shareholders vote in favor,” Musk said.
In early May, Musk announced that his deal to purchase the company was “temporarily on hold” which was followed by a temporary 18% dip in Twitter stock prices.
Musk alleged that Twitter was not providing sufficient data backing its calculations that “spam/fake accounts do indeed represent less than 5% of users.”
Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of usershttps://t.co/Y2t0QMuuyn
— Elon Musk (@elonmusk) May 13, 2022
Lawyers for Musk sent a subsequent letter to Twitter asking for the data and warning that should Twitter refuse to comply with the request, the deal could fall through altogether, according to The Associated Press.
The AP reported that Twitter responded to the news of Musk’s letter in early June and said that the company was sharing information with Musk “in accordance with the terms of the merger agreement,” adding that the current deal was in “the best interest of all shareholders.”
The company said it intended “to close the transaction and enforce the merger agreement at the agreed price and terms.”
Musk has alluded to major changes for Twitter if and when he takes over. He has said he’s not a fan of remote work so Twitter employees might expect a return to the office.
More importantly, however, he has expressed on numerous occasions his disagreement with Twitter’s censorship policies that have been abused to silence conservatives on the platform.
Twitter employees are most concerned about potential layoffs as Musk has said he needs to figure out how to cut costs and make the company profitable.
“Right now, costs exceed revenue,” Musk said during a Thursday meeting with Twitter employees. “That’s not a great situation.”
“There would have to be some rationalization of headcount and expenses to have revenue be greater than cost. Otherwise, Twitter is simply not viable or can’t grow,” Musk said, adding that “anyone who’s obviously a significant contributor should have nothing to worry about.”
Much of the world seems to be greatly anticipating Musk’s takeover of Twitter and the massive changes he plans to make.
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