The board offered the recommendation in a Tuesday Securities and Exchange Commission filing with its full support. If the deal is to pass, shareholders will have to approve the decision in a likely early August vote. This vote would allow Musk to purchase each share at $54.20 and take the company private.
“Twitter’s Board of Directors, after considering the factors more fully described in the enclosed proxy statement, unanimously 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,” the company said in the filing.
The recommendation sent Twitter’s shares up by 3.8%, according to the Street.
This recommendation comes less than a week after Musk met with the company’s staff at an all-hands meeting. Musk spoke about his vision for the company during the meeting. His vision included expanding the social platform’s userbase, alluding to potential layoffs, and a desire to be “hands-on” in the product design process.
The approval also arrived after Musk threatened to withdraw his initial acquisition agreement on June 6 in an SEC filing. Twitter quickly responded, providing him with access to the company’s internal data to allow him to investigate claims regarding spam bots. While Musk has not spoken about spam bots since getting access to that data, it remains unclear how that may affect future negotiations between the billionaire and the board of directors.