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Twitter is a step closer to approving $44 billion buyout deal with Elon Musk

The company's board of directors on Tuesday advised shareholders to vote to approve the acquisition first proposed by Musk in April.

Elon Musk's $44 billion offer to buy Twitter moved a step closer to a vote on Tuesday, which could set the stage for the deal to move forward.

In a Securities and Exchange Commission filing, the San Francisco-based company's board of directors advised shareholders to approve the deal Musk first proposed in April.

If given the green light, stakeholders will receive $54.20 for each share of common stock in the company, which is a significant premium over the $39.31 share price at which Twitter traded before Musk revealed his purchase of a 9% stake in the company.

Twitter shares on Tuesday morning were selling at $37.82.

Musk's proposed acquisition of the social media platform has seen a number of ups and downs over the last couple of months. Musk, currently the richest person on the planet and owner of several high-flying companies including Tesla and SpaceX, has accused Twitter of being less than forthcoming about the number of bot accounts on the social media platform. He has hinted that the matter could throw a wrench into the buyout plans.

Twitter has asserted that these automated accounts, which produce scheduled, pre-written postings, only make up about 5% of the 229 million monetizable daily active users on the site. That "monetizable" distinction means these users are people and organizations that can view ads on the platform.

The matter is essential to how Twitter makes money. Ads, which generate revenue for the company, are served to its millions of users every day. Advertisers look for users to engage with — and hopefully spend money — based on those ads.

Musk has said he plans to ramp up profit-making efforts at the company if the acquisition is successful.