Twitter Board is Over the Moon for Elon Musk Deal

The board unanimously approved being taken over by the SpaceX boss, but he says there’s “still a few unresolved matters”
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Almost there! Twitter just moved considerably closer to joining the Elon Musk empire Tuesday as the social media platform’s board of directors unanimously approved his $44 billion takeover offer bid, according to a document filed with the Securities Exchange Commission.

The company stated in Tuesday’s SEC filing that the board “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 recommendation came at around the same time as the SpaceX/Tesla king still seemed to be dumping cold water on the deal, commenting at Bloomberg’s Qatar Economic Forum that there are “still a few unresolved matters” for the scheme to go through, reported the Wall Street Journal.

First and foremost, there is still the spambot situation to contend with. Musk wants Twitter to prove its claims that fewer than five percent of active daily users are bots and other fake accounts. On May 13, Musk halted the deal to investigate the issue, a particular bugaboo for him.

“Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users,” he tweeted. Twitter has since said it has given Musk the proof he seeks, but he apparently still doesn’t see it that way.

“That is a very significant matter,” he said at the forum.

Musk now must also nail down details of the debt financing that will allow him to finalize his purchase, and it’s still not guaranteed that he can woo the shareholders to his side, which he must do for the takeover to succeed.

Musk recently took questions during an all-hands meeting of about 8,000 Twitter employees, explaining to the workers something that he seems to the believe current ownership doesn’t comprehend: “Right now, costs exceed revenue,” he said. “That’s not a great situation.”


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