A filing with the Securities and Exchange Commission shows that Twitter’s board of directors approved Elon Musk’s $44 billion bid to buy out the company on Tuesday.
At $38 a share on Tuesday morning, Twitter’s stock was up less than 1 percent from Elon Musk’s equity firm Apollo Global Management, Inc.’s tender offer of $54.20 a share.
Just a few days ago, Tesla CEO Elon Musk held a virtual all-hands meeting with Twitter employees. This recent regulatory filing shows that Musk is serious about his plans to buy other companies.
Musk says that the purchase was put on “hold” last month because Twitter doesn’t allow spam and bots.
Musk threatened to cancel the contract if Twitter couldn’t show clear evidence that less than 5% of its daily users are spam and bot accounts.
People think that spambots make up 20% of Twitter’s 229 million active users, which is four times more than what Twitter says.
Tuesday, Twitter’s board of directors sent a letter to shareholders asking them to vote “unanimously” in favor of the merger deal.
If the deal to buy the company were to close today, investors would make $15.22 per share.
It is thought that Jack Dorsey, who helped start Twitter with Evan Williams, will get $978 million when Elon Musk buys the company.
Because of the deal, Parag Agrawal, who is the CEO of the IT company in San Francisco, would get $42 million.
The SEC says that Dorsey owns 18.042,428 shares, which is 2.4% of the company.
When Dorsey quit as CEO late last year, he gave $42 million to Agrawal, who took over as CEO. CFO Ned Segal, on the other hand, will only get $25.5 million.
Change in control clauses in Agrawal and Segal’s contracts mean that they will get paid if they are fired within 12 months of a new owner taking over the company.
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