© Reuters
Shares of Twitter were up by just under 1% in the early morning hours on Tuesday, selling for slightly more than $38 a share - well below the $54.20 per share tender offer from Musk.
The regulatory filing comes just days after Musk held a virtual, all-hands meeting with Twitter employees — the latest sign that the world's richest man is serious about following through on his acquisition plans.
Last month, Musk said he was putting the deal "on hold" pending a review of Twitter's policies as it relates to bots and spam accounts.
Musk threatened to cancel the deal unless Twitter offered definitive proof that less than 5% of its daily users are spam and bot accounts.
In recent statements, Musk said that he estimated that as much as 20% of Twitter's 229 million users are spambots - four times the figure touted by the company.
In a filing with the SEC on Tuesday detailing a letter to investors, Twitter's board of directors said that 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 each share they own.
Jack Dorsey, the co-founder of Twitter who stepped down as CEO last year, stands to pocket $978 million once Musk's takeover is complete.
Parag Agrawal, the current chief executive of the San Francisco-based tech giant, will go home with a $42 million payday as a result of the transaction.
Dorsey owns 2.4% of the company, which translates into 18,042,428 shares, according to SEC filings.
Agrawal, the former chief technology officer who succeeded Dorsey as CEO late last year, would be due to receive a payout of $42 million while another Twitter executive, CFO Ned Segal, would go home with a $25.5 million pay package.
Agrawal and Segal's payouts would be triggered by a so-called "change in control" clause in their contracts which kicks in if either of them is terminated within 12 months of new ownership assuming the helm of the company.
Reader Comments
No harm meant of course, just saying it like I sense it......I mean in Africa they are worried more about their next meal this year, but not next year (I hope), and I suspect they, like I, could give a flying flipping eff bout effing twitter and all the twitter fools tweeting their lives away - tweet, tweet, tweet endlessly on twitter and what difference does it make is a fair question. There are better options already and.....well, lets just see what happens.
ps - lithium batteries are a joke when it comes to energy balance and you know it and I know it and many others know it as well, so maybe you ought focus on keeping TSLA from crashing more than it already is fixing to crash - so hyper inflated it is pathetic. The amount of earth moved around to get the lithium, cobalt, aluminum, copper, and other metals and elements to make a lithium battery for powering an automobile is prohibitive from a sustainability standpoint and this is known. Many have to suffer for each Tesla vehicle produced and it is a god-damn shame.
Far more useful then Twitter when it comes to what is important.
Hope your house is in order.