On June 21, Twitter’s board unanimously recommends that shareholders vote for a $ 44 billion bid to buy Elon Musk’s social media company. SEC filing show.
According to Filing, Mask’s offer to Twitter will earn $ 54.20 for each shareholder, which is above the company’s current stock value of $ 38.
The board urged shareholders to vote in support of the merger agreement, compensation paid to Twitter executive officers, and postponement of the meeting due to lack of voting.
On the other hand, the deadline for the merger is October 24, but the date for the shareholder vote has not been set.
Elon Musk’s long-term Twitter purchase
Elon Musk’s interest in Twitter ran into several issues as the world’s wealthiest men claimed that social media sites were more transparent about the number of bot accounts on their platform.
However, these issues seem to be a thing of the past, as Mask recently held a virtual meeting with a Twitter employee. During the meeting, he hinted that the platform could integrate a payment system that enables cryptocurrency transactions.
Some analysts say the virtual conference is the latest signal that Elon Musk continues to promise to complete the acquisition.
Who will benefit from the acquisition?
If a shareholder approves a bid for the current value of Twitter shares, each shareholder will have approximately $ 15 in his pocket for all shares owned by the company.
This means that Twitter co-founder Jack Dorsey, who owns 18,042,428 shares, will receive $ 978 million from the transaction. Other top shareholders such as Vanguard Group, Morgan Stanley and BlackRock generate $ 4.4 billion, $ 3.6 billion and $ 2.8 billion in revenue, respectively.
Also, top Twitter executives such as CEO Parag Agrawal and CFO Ned Segal obtain That’s $ 42 million and $ 25 million, respectively. This is because the “change of control” clause of the contract allows for large payments if the new ownership is terminated within 12 months.
