It excited many people when Elon Musk first tweeted his potential Twitter takeover. It also significantly impacted the social media platform’s stocks, which went up by almost 5% in a limited time frame.
Ever since then, many discussions have taken place between Twitter and Musk about the takeover, but things have been anything but smooth. The billionaire demanded Twitter address his concerns before moving forward with the company’s acquisition.
Board of Directors approves Elon Musk’s deal
Musk also wanted to know whether he had the support of Twitter’s shareholders. Despite being the wealthiest man on Earth, and potentially the world’s first trillionaire, he remains a controversial figure that not many people like.
According to reports, Twitter’s Board of Directors has given the green light to the $44 billion mergers. However, Elon Musk’s offer of Twitter, which is $54.20 per share, is much more than the site’s stock ($38.91).
After the board approved the deal, it sent a letter to the SEC recommending Twitter Stockholders vote in favor of the ‘merger agreement.’ If the deal is closed, investors will see a profit of $15.222 for each share they hold.
The Twitter takeover has proven to be an obstacle for the Tesla CEO. Before this, his legal team sent a letter to Twitter to provide correct information about the number of spam accounts on the website, or else they would ‘back out of the deal.’ If he does call off the deal, he will have to pay a hefty penalty of billions legally.
Elon also got in trouble with the SEC, which asked him to explain why he delayed filing a significant file for the merger. On top of all this, investors filed a lawsuit against him for not disclosing his stake in Twitter on time.
Tesla to fire employees?
In an interview, the SpaceX CEO said he would cut Tesla’s salaried workforce by 10% in the next three months. He added that this is because he has ‘negative sentiments about the US economy.
His suspicion of receiving a margin call is legitimate, as Tesla’s stock had declined since April 2022, when Musk first announced his plan to buy Twitter.