The board of directors of the microblogging site, Twitter, has "endorsed unanimously that shareholders approve the proposed $44 billion sale of the company to billionaire Elon Musk," as per CNET report. This is according to the U.S. Securities and Exchange Commission (SEC) on Tuesday.
The bid to buy Twitter was struck by Tesla and SpaceX CEO back in April. During a virtual meeting with the employees, Musk restated his desire to move forward with the acquisition. However, there is still doubt if the deal will push through as shares of Twitter remain far below his offering price.
Musk to Move Forward With the Deal Despite of Twitter's Share Dip
The board, in a letter to investors included in the SEC filing, said that it "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."
Based on Bloomberg report, the vote could happen in late July or early August although the letter didn't specify when it would take place.
Despite of the fact that Twitter's share dipped below the $54.20 per share that Musk originally offered, the billionaire continue to express his intent to push through with the deal.
Musk reportedly said he wants 1 billion users, in a meeting with Twitter employees last week.
There are no further comments from Twitter.
Since the Twitter's board had already approved the deal, their recommendation is not really surprising. As of writing, it is the latest step in an ongoing process of Twitter acquisition.
Read Also: Twitter Moves to Save Acquisition Deal With Elon Musk - What Did the Microblogging Site Do?
Musk Says There are Three Unresolved Matters Related to Twitter Deal
Earlier, Musk threatened to end his bid to buy Twitter. Musk expressed that he will not proceed with the acquisition if the company will not met his demands to release data on the number of fake and spam accounts in the platform.
The Tesla and SpaceX CEO raised doubts on Twitter's statement that the fake accounts are comprised only of 5% of its 229 million users. According to CNET, Musk accused Twitter of "actively resisting and thwarting" his request for information on bots.
But earlier this month, Twitter moved to save the acquisition deal and reportedly agreed to provide its firehose data.
In an interview with Bloomberg at the Qatar Economic Forum on Tuesday, Musk stated that one of the several unresolved matters related to the Twitter deal is the approval of the deal by shareholders. The bot issue is the second one and the third issue is whether the debt portion of the deal will be able to come together, according to Musk.
"Musk also has signaled that he'd be open to a renegotiation of the terms of the deal," as per CNET report. According to him, a lower price isn't "out of the question." But, Twitter expressed that it doesn't plan to renegotiate the deal that's currently in place.
In April, Twitter co-founder and former CEO Jack Dorsey indicated his support for the deal. Musk is the "singular solution" he trusts, according to Dorsey.
Related Article: Elon Musk Puts Twitter's $44 Billion Deal 'On Hold' Following Pending Details on Fake Accounts
