NAGA : Elon Musk's $44 Billion Deal to Buy Twitter Gets Board Endorsement💼

In a proxy statement filed to the US Securities and Exchange Commission (SEC), Twitter's board of directors have asked shareholders to approve Elon Musk's $44 billion bid. The statement invites shareholders to a special meeting to discuss the $44 billion acquisition of Twitter. According to the proxy statement submitted to the SEC on Tuesday, Twitter's board recommends that the shareholders unanimously vote to accept the merger agreement.

The letter to the shareholders didn't specify when the vote would occur, but reports suggest that it could occur in late July or early August. Musk continued to indicate his intention to move forward with the acquisition in a meeting with Twitter staff last week, where he reportedly claimed he wants 1 billion users, despite the company's share price being significantly lower than the $54.20 per share he initially offered. The agreement is still hanging in the balance due to the problem of how many bots are using the Twitter platform. A stream of Tweets without any restrictions was made available to Musk earlier this month to examine the proportion of bots using the social network.

Twitter ($TWTR) Stock and What a Musk's Takeover Mean For Shareholders‍‍

Before the market opened on Tuesday, Twitter shares increased by almost 3% to $38.98, which is still well below the $54.20 per share that Musk proposed. Twitter's stock last traded at that level on April 5 when a seat on the board of Twitter was offered to Musk prior to his bid to buy the entirety of Twitter. Twitter's shares are currently trading at $38.91. Musk's offer of $54.20 is far more than the current rate. In light of this, the shareholders will benefit from the agreement. Shareholders in the company would make $15.29 for each share they own if the deal were to close right away.

Tesla ($TSLA) shares reaction to the news

The stock price of Tesla, which was up 9.35% at the end of yesterday's trade to close at $711.11 per share, suggests that the company's shares are, as usual, unmoved by the Twitter takeover news. At pre-market today, Tesla shares are anticipated to trade at $691.00, down 2.83% from yesterday's market closing.

Conclusion

No one knows where and how the deal would be concluded after a lot of back and forth over the past three months. We have to wait till the Shareholders vote. Musk intends to privatize Twitter, which would disable investors' buying of Twitter stock. Thoughts about the deal and a general market selloff have caused Twitter's shares to decline since the initial deal was revealed.

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