Elon Musk is closer to completing his $44 billion takeover of Twitter. His Twitter acquisition has been approved.
On Tuesday, the company’s board of directors unanimously approved Musk’s buyout offer.
Shares of Twitter were up by nearly 1% as of early morning Tuesday, selling for a little more than $38 a share, which is well below the $54.20 per share tender offer from Musk.
The regulatory filing comes several days after Musk hosted a virtual, all-hands meeting with Twitter employees, which was the latest sign that the richest man in the world is very serious about following through on his acquisition plans.
However, Musk had previously threatened to cancel the deal unless the social media platform offered solid proof that less than 5% of its daily users are spam and bot accounts.
In recent statements, Musk claimed that he estimated that as much as 20% of Twitter’s 229 million users are actually spambots – four times the figure touted by the company, the New York Post reported.
In a filing with the SEC on Tuesday that detailed a letter to investors, Twitter’s board of directors announced that it “unanimously recommends that you vote (for) the adoption of the merger agreement.”
If the deal closes now, investors of the company would walk away with a profit of $15.22 for each share they own.
Jack Dorsey, the co-founder of Twitter who stepped down as the company’s CEO last year, is expected to pocket $978 million once Musk’s takeover is complete.
Parag Agrawal, who is the current chief executive of the San Francisco-based tech giant, will pocket $42 million.
Dorsey owns 2.4% of the company, 18,042,428 shares, according to SEC filings.