Tesla CEO Elon Musk has faced several roadblocks in his pursuit of Twitter, but he is now one step closer to closing the acquisition. Twitter’s board of directors has finally asked shareholders to support Musk’s $44 billion takeover proposal.
Twitter’s board “unanimously recommends” that the social media company’s shareholders vote to approve the merger deal, according to a document filed with the Securities and Exchange Commission (SEC). The board has also requested that shareholders accept any financial compensation made to executives as a consequence of the transaction.
In the event that there are insufficient votes for a merger, the material also provides instructions to seek proxies and postpone extra meetings if required.
Twitter’s share price was $39.06 at the time of writing, down from Musk’s first offer price of $54.20. Unfortunately for Twitter, the company’s market valuation has also dropped below $30 billion, as TechCrunch points out.
However, while the board’s recommendation will likely put at ease, the matter will not be voted on by the company’s shareholders until at least August 2022. As a result, it is clear that this is not the end of the story.
Nonetheless, the Tesla CEO considers the development to be a step forward.