Twitter board recommends shareholders vote for Elon Musk’s takeover

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Twitter’s board of directors has unanimously recommended that shareholders vote in favor of Elon Musk’s takeover of the social media giant.

Twitter’s board initially approved a $44 billion takeover offer of $54.20 per share in late April, and shareholder approval is the final hurdle to the deal going through without any potential antics from Musk.

According to a US Securities and Exchange Commission (SEC) filing on Tuesday, Twitter’s board of directors unanimously decided that a “merger agreement is recommended” and called on shareholders to vote in favor of the deal.

The board has stated that Twitter will host a virtual meeting – on an unspecified date – to vote on the merger, with a deadline set for October 24.

If the merger goes through, shareholders will receive $54.20 in cash for each share they own, and with Twitter’s TWTR stock priced at $38.91 at the time of writing, the deal would represent a premium of approximately 39%.

The takeover appeared to go up in the air earlier this month after Musk targeted the Twitter board for failing to provide data regarding the number of fake users on the platform, and threatened to withdraw his offer if the data was not delivered. .

The board has since agreed to share the data with Musk, and the issue has been resolved. Many onlookers believe that Musk has been trying to get out of the deal as a result of the stock price plummeting since the takeover bid was first made.

An indication that Musk was seriously intending to move forward with his role emerged on June 16, when the Tesla CEO first addressed employees in a question-and-answer session regarding his plans to move the company forward.

According to a leaked transcript of the call released by Vox, Musk suggested he might look to integrate a range of digital payments into the service, including crypto:

“I think it would make sense to integrate payments into Twitter so that it would be easier to send money back and forth. And if you have currency as well as crypto. Basically, whenever someone finds it useful.”
“So my goal is to maximize the utility of the service—the more useful it is, the better. And if one can use it to make convenient payments, that’s an increase in interest.”

Bots and verification accounts were other issues he highlighted, as Musk identified the value of offering verified paid accounts to enable users to distinguish between real and fake users.

Related: Elon Musk faces ‘ridiculous’ $258 billion lawsuit over Dogecoin

Musk explained that there are “a lot of cryptocurrency scams on Twitter” as one of the main reasons for introducing such a feature.

This issue is particularly close to the home of a Dogecoin supporter (DOGE), given that a series of fake videos using his likeness to promote crypto scams have recently been circulating on the social media platform.

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