Elon Musk's deal with Twitter has been approved by the platform's Board of Directors. They made a recommendation to the company's shareholders to vote “for” the adoption of the merger agreement.
Twitter's board unanimously recommended that shareholders approve the company's proposed $44 billion sale to Tesla and SpaceX CEO Elon Musk, according to a filing with the regulator. In the filing with the US Securities and Exchange Commission on Tuesday, Twitter's board of directors said it “unanimously recommends that you vote (for) the adoption of the merger agreement.”
Last week, Musk held a virtual meeting with Twitter employees, which may indicate that he is serious about the deal. However, there are still several unresolved issues that actually hinder its final completion. On June 21, at the Qatar Economic Forum 2022, Musk outlined the main issues to be resolved before the transaction can complete.
The main one, as before, remains the number of fake and spam users on the platform. Twitter claims that their number is less than 5%, but the experience of using the platform, as well as some independent research, shows that this is not true. “You've probably read about the question as to whether the number of fake and spam users on the system is less than 5% as Twitter claims, which I think is probably not most people's experience when using Twitter. So we're still awaiting resolution on that matter, and that is a very significant matter,” Musk said.
In addition, as the head of Tesla said, there is the question of “will the debt portion of the round come together?” Also, the final question remains whether Twitter's shareholders will vote “for.” Although the board of directors of the platform made a recommendation to shareholders, it still remains unknown how the voting will go.
© 2022, Eva Fox | Tesmanian. All rights reserved.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.