As part of the agreement, Twitter stockholders would receive $54.2 per share for their ownership; however, Musk previously stated that he may relist the firm on the stock exchange in three to five years.
On October 27, Elon Musk formally acquired the social media company Twitter in a deal that resulted in a legal dispute, verbal sparring, and some immediate firings. Musk paid $54.2 per share to acquire the social media site, putting the deal’s overall worth to just under $44 billion.
As part of the agreement, Musk is also taking the business private. As a result, the stock of the company will be delisted and removed from the ownership of public shareholders.
After being listed on the New York Stock Exchange in 2013, over nine years have passed, and Twitter is no longer a publicly traded business. On October 28, trading in Twitter shares will be suspended, according to the NYSE website. eToro and Robinhood, two crypto-friendly trading platforms, as well as the NYSE, delisted Twitter shares from their platforms.
Given that Musk discussed the concept long before included it in the purchase and even stated his aim to take Tesla private in the past, the decision to take Twitter private may not have come as a huge surprise to many.
Musk will get certain regulatory advantages and avoid paying a few million dollars in fines by making Twitter public. (Musk was hit with a $40 million fine for “joking” about buying Tesla.) Being publicly traded draws intense scrutiny from authorities, and Musk and the US Securities and Exchange Commission have a notorious history together.
Twitter will also avoid some financial public scrutiny now that it is a private corporation because it will no longer be forced to make quarterly disclosures regarding the state of its business.
Binance, a cryptocurrency partner in the $44 billion acquisition, is said to have contributed $500 million to the transaction. With a $500 million stake in Twitter, Binance ranks as the takeover’s fourth-largest donor.