Twitter board approves Elon Musk’s $44bn deal

After long talks, discussions, debates, and concerns about the owing of the microblogging site Twitter, now the bird is in the court of Elon Musk as Twitter unanimously approved Elon Musk’s acquisition of the social media platform. 

The news about Musk’s Twitter acquisition came in April 2021, where Elon Musk decided to buy a 100 percent stake in Twitter for approx $44 billion, around $54.20 per share, and all of it in cash.  On April 25,  both Twitter and Musk had a meeting and were in the final stretch of negotiations on the sale of Twitter.Twitter filed a statement with the Securities Exchange Commission on 21 June in which the company’s board of directors encouraged shareholders to approve the acquisition. 

“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,” Twitter said in a Securities and Exchange Commission filing on June 21.

Meanwhile, as per reports, the current CEO Parag Agrawal would take home close to 42 million (Rs 310 crore) if he were fired within 12 months of the change in control at the social media company. 

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If everything goes in a smooth manner, this will be one of the biggest tech acquisitions of all time, in fact, the takeover by Elon Musk is the third-largest tech acquisition in the world. There have occurred many other shocking takeovers in the tech industry in the past few years.  Only Microsoft’s deal to buy the gaming giant Activation Blizzard and Dell’s 2015 move to acquire the data storage leader EMC involved more money. Microsoft completed the largest tech acquisition in history when it bought the gaming giant Activision BLizzard for $68.7 billion.