Twitter Board Approves Elon Musk's Purchase of the Platform

SpaceX founder and Tesla CEO Elon Musk bought Twitter for $44 billion on April 25. However, in a securities filing on April 14, Musk had expressed that he didn’t have confidence in Twitter’s management.

Twitter's board of directors, in a Securities and Exchange Commission filing, has unanimously approved Elon Musk’s acquisition of the micro-blogging site.

In the filing on Tuesday, Twitter said: "The Twitter Board, after considering various factors described in the section of this proxy statement captioned 'The Merger— Recommendation of the Twitter Board and Reasons for the Merger," has unanimously: (1) determined that the merger agreement is advisable and the merger and the other transactions contemplated by the merger agreement are fair to, advisable and in the best interests of Twitter and its stockholders; and (2) adopted and approved the merger'."

After the board's approval, the deal is likely to close this year; with this, Twitter will become a privately-held company at $54.20 per share.

In an interview at the Qatar Economic Forum, Musk had revealed that the approval of Twitter shareholders is one of the “unresolved matters” and raised questions about the number of spam accounts. However, Twitter had claimed that the number of fake accounts was less than 5 percent; Musk stated that the statistic “is probably not most people’s experience when using Twitter”.

With this, the fate of Twitter CEO Parag Agrawal will also be decided. The research firm Equilar estimates that Agrawal would get $42 million (INR 3 billion) if terminated within 12 months of the change in control.