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Twitter board recommends shareholders vote for Elon Musk’s takeover

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The Twitter board has unanimously advisable that shareholders vote in favor of Elon Musk’s takeover of the social media large.

Twitter’s board of administrators initially accepted the $44 billion takeover bid at $54.20 per share in late April, and shareholder approval is the ultimate hurdle to the deal going by means of bar any doubtlessly erratic antics from Musk.

According to a June 21 U.S. Securities and Exchange Commission (SEC) submitting, Twitter’s board of administrators unanimously decided that the “merger agreement is advisable” and have referred to as on shareholders to vote in favor of the deal.

The board acknowledged that Twitter can be internet hosting a digital assembly — at an unspecified date — to vote on the merger which has a deadline of Oct. 24.

If the merger goes by means of, shareholders will obtain $54.20 in money per share that they personal, and with Twitter inventory TWTR priced at $38.91 on the time of writing, the deal would mark a premium of roughly 39%.

The takeover gave the impression to be up within the air earlier this month after Musk took purpose on the Twitter board for not offering knowledge regarding the variety of pretend customers on the platform, and he threatened to withdraw his bid if the info wasn’t handed over.

The board has since agreed to share knowledge with Musk, and the problem has been resolved. Many onlookers believed that Musk was making an attempt to get out of the deal on account of the share worth fall for the reason that takeover provide was first made.

An indication that Musk significantly intends to push ahead along with his takeover got here on June 16, when the Tesla CEO addressed workers for the primary time in a Q&A session regarding his plans for the corporate shifting ahead.

According to a leaked transcript of the decision printed by Vox, Musk urged that he might be trying to combine a number of digital funds into the service, together with crypto:

“I think it would make sense to integrate payments into Twitter so that it’s easy to send money back and forth. And if you have currency as well as crypto. Essentially, whenever somebody would find it useful.”

“So my goal would be to maximize the usefulness 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 usefulness,” he added.

Bots and verifying accounts was additionally one other concern he highlighted, with Musk outlining the worth of introducing paid verified accounts to allow customers to distinguish between actual and faux customers.

Related: Elon Musk will get hit with ‘ridiculous’ $258B Dogecoin lawsuit

Musk highlighted there being “quite a lot of crypto scams on Twitter” as being of the important thing causes to introduce such a function.

The concern is particularly near residence for the Dogecoin proponent, given {that a} collection of deepfake movies utilizing his likeness to advertise crypto scams not too long ago circulated on the social media platform.