Twitter’s board of directors recommends that shareholders vote in favor of the sale to Musk

New York (CNN Business) — Twitter’s board of directors has unanimously recommended that the social media company’s shareholders vote to approve its sale to Elon Musk, according to a regulatory filing Tuesday.

Twitter plans to hold a special meeting of shareholders to vote on the acquisition, one of the final steps needed to close the deal, at an undisclosed date in the coming months.

The board of directors said in the filing that it determined “none of the possible alternatives to the merger,” including maintaining independence or seeking a different acquirer, was likely to be better for shareholders than the Musk deal.

The board of directors unanimously agreed to sell the company to Musk for $44 billion in April, after Tesla’s billionaire CEO became Twitter’s largest shareholder and hinted he might attempt a hostile takeover of the company. .

Tuesday’s filing is the latest indication that the company is moving forward with the deal as planned, despite doubts raised by Musk in recent weeks.

Musk has suggested he might try to leave the deal out of concern about the number of bots and fake accounts on the platform. Musk participated in an awkward meeting with all Twitter employees last week in which he took questions and discussed his plans for the company, though he did not explicitly reaffirm his commitment to the deal.

In an interview with Bloomberg this Tuesdaysaid there are “some unresolved issues” related to the deal, reiterating his concern about bots.

Although Musk is the richest person in the world, much of his wealth is tied to Tesla shares, which have fallen sharply in recent weeks. Much of the tech sector, including social media companies, has also seen its shares take a hit amid a broader market decline.

Twitter shares are still trading well below the $54.20 a share Musk offered in April, suggesting investors remain skeptical the deal will go through, or be completed at that price.

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Twitter’s board of directors recommends that shareholders vote in favor of the sale to Musk