Elon Musk’s $44 billion Twitter deal gets board approval

Twitter’s board of directors has unanimously recommended that shareholders approve the company’s proposed $44 billion sale to billionaire and Tesla CEO Elon Musk, according to a regulatory filing Tuesday.

Musk reiterated his desire to move forward with the acquisition last week during a virtual meeting with Twitter employees, although Twitter shares remain well below its offer price, signaling a considerable doubt that this will happen.

Shares rose about 3% to $38.98 before the opening bell on Tuesday, well below the $54.20 per share offered by Musk for each share. The company’s shares last hit that high on April 5 when they offered Musk a seat on the board before he offered to buy all of Twitter.

In a filing with the U.S. Securities and Exchange Commission on Tuesday detailing a letter to investors, Twitter’s board said it “unanimously recommends that you vote (for) the adoption of the merger agreement”. If the deal were to close now, investors in the company would pocket a profit of $15.22 for every share they hold.

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