They Love Him: Twitter Board Approves Elon Musk’s Takeover Bid

They Love Him: Twitter Board Approves Elon Musk’s Takeover Bid

  • The board of Twitter has unanimously approved Elon Musk's takeover bid of the social media company
  • The board stated on Tuesday that the bid is good, fair and in the best interest of the company and its shareholders
  • Musk has stated that board approval are one of the three things standing in the way of deal which he hopes to complete in 2022

After back and forth, the Twitter board on Tuesday, June 21, unanimously approved the takeover bid by Tesla CEO, Elon Musk of the social media company.

A statement by the board described the takeover as fair and in the best interest of Twitter and its shareholders and, therefore adopted the merger.

The board said:

"The Twitter Board, after considering various factors described in the section of this proxy statement captioned "The Merger— Recommendation of the Twitter Board and Reasons for the Merger," has unanimously: (1) determined that the merger agreement is advisable and the merger and the other transactions contemplated by the merger agreement are fair to, advisable and in the best interests of Twitter and its stockholders; and (2) adopted and approved the merger," the company said in a Securities and Exchange Commission filing on Tuesday.

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According to Fox News, the deal is expected to close in 2022 and would take Twitter private at $54.20 per share.

Elon Musk had in an interview on Tuesday, June 21, 2022, at the Qatar Economic Forum, said shareholder approval was part of the three unresolved issues that stand in the way of completing the deal.

Elon Musk, Twitter
Elon Musk
Source: Getty Images

How Musk hopes to finance the deal

The world’s richest man has promised $33.5 million in equity financing and has received commitments from Morgan Stanley Senior Funding and other financial institutions to the tune of $13 billion in debt financing.

Musk also said that he is waiting for a solution to his dispute with Twitter over the number of spam and fake accounts on the platforms, which he describes as an important matter.

Twitter has stated that fake and spam accounts make up less than 5 per cent of users on the platform. But Musk puts the figure at 20 per cent.

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After threatening to walk away from the deal earlier this month, the microblogging site handed over to Musk a firehose of a deal. Musk claimed Twitter violated the merger agreement by resisting and undermining his right to information concerning the fake and spam accounts data.

Elon Musk’s tumbling fortunes still Makes him far Richer than Dangote, Africa’s richest man

Recall that reported that when compared to the world’s richest man, Elon Musk, Dangote’s wealth pales in significance.

Elon Musk has lost about $64.5 billion in 2022 as he maintains a clear lead from Africa’s richest man, Aliko Dangote who gained about $1.51 billion this year as the sale of Dangote Cement surges across Africa.

Bloomberg billionaire index puts Elon Musk’s net worth at $206 billion which still places him at the top spot as the world’s richest man.


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