Twitter board of directors has unanimously recommended the shareholders to approve the $44 billion Twitter deal proposed by the billionaire and Tesla CEO, Elon Musk. According to the SEC filing, Twitter’s board believes the merger is fair, advisable, and in the best interests of Twitter and its stockholders.
$44 billion Twitter deal faces several issues
Speaking to the Qatar Economic Forum, Musk said that the approval of the deal by shareholders is one of several “unresolved matters” related to the Twitter deal. Elon Musk has also explained concerns regarding the number of fake and spam users on Twitter, which is the biggest hurdle that has put the $44 billion Twitter deal on hold. As per Twitter, the automated accounts only make up about 5% of the 229 million monetizable daily active users on the micro-blogging platform.
Read more: Elon Musk Threatens to Terminate Twitter Deal over Fake Accounts
If the acquisition deal is given the green light, then each stakeholder will receive $54.20 for every share of common stock in the company. At the time of writing, Twitter’s share price is around $38.12, which is lower than Musk’s proposed offer. The company’s market cap has dropped below $30 billion so the $44 billion Twitter deal will be extremely beneficial for all the shareholders. However, it is pertinent to mention here that the company’s shareholders will not vote on the matter until at least August 2022.
Elon Musk expected to serve as temporary CEO
As per an international media outlet, Elon Musk is expected to serve as a temporary CEO of Twitter for a few months after the deal closes. However, the current CEO, Parag Agrawal, is currently focusing on growing Twitter’s daily active user base and bringing new products to customers. Recently, the company hit 229 million monetizable daily active users, a 15.9% increase from the same period last year.
