Twitter’s board unanimously recommends shareholders vote on Elon Musk’s $44 billion takeover bid for the social media company on June 21st. filing with the US Securities and Exchange Commission shows.
According to the announcement, Musk’s Twitter offer would net each shareholder $54.20, more than the company’s current share price of $38.
The board urged shareholders to vote in favor of the merger agreement, compensation to be paid to Twitter’s chief executives, and postponing the meeting due to insufficient votes.
Meanwhile, the merger is set for October 24, but a shareholder vote date has yet to be set.
The protracted purchase of Elon Musk on Twitter
Elon Musk’s interest in Twitter has run into some trouble as the world’s richest man insisted the social networking site be more transparent about the number of bot accounts on its platform.
Those issues appear to be a thing of the past, however, as Musk recently held a virtual meeting with Twitter staff. During the meeting, he hinted that the platform could integrate a payment system that allows for cryptocurrency transactions.
Several analysts believe the virtual meeting is the latest signal that Elon Musk remains committed to completing the deal.
Who benefits from the takeover?
If shareholders approve the takeover bid at Twitter’s current share price, each shareholder will receive about $15 for each share of the company they own.
This means that Jack Dorsey, co-founder of Twitter, who owns 18,042,428 shares, will receive $978 million from the deal. Other top shareholders such as Vanguard Group, Morgan Stanley and BlackRock will earn $4.4 billion, $3.6 billion and $2.8 billion, respectively.
Additionally, Twitter executives such as CEO Parag Agrawal and CFO Ned Segal could earn as much as $42 million and $25 million, respectively. This is because the change of control clause in their contract allows them to receive huge payouts if terminated within 12 months of new ownership.
Credit : cryptoslate.com