Twitter Inc (NYSE: TWTR) is up more than 2.0% this morning after its board unanimously approved the $54.20 a share buyout offer from Elon Musk.
Board recommends that shareholders do the same
The board also said the $44 billion agreement with Tesla CEO is in the best interest of shareholders as it recommended that they vote in favour of the transaction at the upcoming “special meeting”.
The Board of Directors unanimously determined the merger agreement is advisable and the merger and other transactions contemplated by the merger agreement are fair to, advisable and in the best interest of Twitter and its stockholders.
The news brings Elon Musk a step closer to becoming the owner and temporary CEO of the American communications company.
What the deal means for Twitter executives
The SEC filing arrives a week after the world’s richest person (Musk) held a virtual meeting with Twitter employees; an indication that he was indeed serious in moving forward with the takeover deal.
At the current stock price, the proposal translates to $16 of per-share profit for Twitter stockholders. Musk intends to take the company private upon completion of the transaction.
The agreement will also see co-founder Jack Dorsey go home with $978 million. Current CEO Parag Agrawal and CFO Ned Segal will also pocket $42 million and $25.5 million out of the buyout, respectively.
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