Elon Musk is one step closer to becoming the new owner of Twitter after the company’s board of directors unanimously approved Elon Musk’s $44 billion Twitter acquisition deal, a document filed with the SEC shows.
According to a filing with the SEC Tuesday, which includes a letter to investors, Twitter’s board of directors said it “unanimously recommends that you vote (for) acceptance of the merger agreement.”
The filing is the latest sign that Musk is taking his acquisition plans seriously. The announcement also comes just days after Musk held a virtual all-hands meeting with Twitter employees. During the meeting, Musk told Twitter workers that “it’s important to have freedom of expression” and that people can “communicate freely.”
Under the terms of the agreement, Twitter shareholders will receive $54.20 in cash for each share of Twitter common stock they own upon the closing of the proposed transaction. The purchase price corresponds to a premium of 38% on the closing price of Twitter shares April 1, 2022that was the last day of trading before Mr. Musk announced his approximately 9% stake in Twitter.
Should the deal close today, Twitter investors would earn $15.22 for each share they own. Twitter co-founder Jack Dorsey, who stepped down as CEO last year, will also rake in $978 million once Musk’s acquisition is complete. Twitter CEO Parag Agrawal will walk away with a $42 million payday as a result of the deal.
On April 25, Twitter agreed to sell the company to Elon Musk for $44 billion, but the deal hit a few bumps after Elon Musk’s lawyers sent a letter to Twitter threatening to kill the Canceling $44 billion deal due to excessive user data. Last week, Twitter agreed to honor Elon Musk’s bot data requests.
The $44 billion purchase price represents a 38% premium to Twitter’s closing price April 1, 2022, the last day of trading before Mr. Musk announced his approximately 9% stake in Twitter. Musk had to use his Tesla stock to raise $21 billion in equity to fund his acquisition of the social media giant.