Shareholders of the social media platform Twitter have finally endorsed Tesla CEO Elon Musk’s offer to buyout the company for about $44 billion.
The vote of these shareholders has relinquished the concluding approval of the acquisition of the social media giant to a United States court. Therefore, the acquisition is now between Elon Musk and a U.S court.
On the contrary, this decision comes only two weeks after he sent a second letter to call off his offer to buy Twitter. Elon Musk had initially announced that he was terminating his offer to buyout Twitter in July.
Elon Musk Foray Into Twitter Buyout
The Tesla CEO started his acquisition journey with the social media giant by first acquiring a 9.2% stake in its shares. According to the news at that time, his 9.2% stake made him the highest shareholder in the firm.
Interestingly, when estimated it was discovered that Elon’s stake was four times higher than that of Jack Dorsey. He was the former CEO and co-founder of Twitter. Invariably, his stake in the firm earned him a spot as one of the board members which he vehemently refused to accept.
Shortly after, the Tesla boss declared his intentions to fully buy Twitter for approximately $44 billion at $54.20 per share. As part of his plans after purchase, he intends to run the social media platform as a private company. In his statement, Elon mentioned that he did not have faith in the present leadership of Twitter and would not be able to make the modifications he craves for.
Notably, it was while making this buyout offer that he hinted that the possibility of a pullout. He said he might reconsider his shareholder position if the deal does not pull through.
In response to his proposal, the Twitter Board of Directors decided to consult with Goldman Sachs and Wilson Sonsini Goodrich & Rosati. They promised to examine the deal and get back to him. This is important as shareholders’ votes are needed to move the deal forward.
After several scrutinies, protests, and disagreements, the Board has agreed to the $44 billion buyout proposal made by Elon.