Twitter Going Private? Delisted From New York Stock Exchange

Elon Musk has reportedly bought all the public shares of Twitter and took it private.

He will own Twitter.

Therefore, it will not be traded publicly on an exchange.

*TWITTER WILL BE DELISTED FROM THE NYSE ON FRIDAY AFTER MUSK COMPLETES DEAL$TWTR pic.twitter.com/jasBHEMrJp

— Investing.com (@Investingcom) October 27, 2022

*TWITTER SHARES TO BE REMOVED FROM S&P 500 AFTER MUSK COMPLETES DEAL ON FRIDAY$TWTR pic.twitter.com/oLFHVgXkkF

— Investing.com (@Investingcom) October 27, 2022

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Twitter is going private and will no longer be listed on the New york stock exchange!! All shareholders will get paid out and be done. Wild times! $TWTR

— Christine Barnum (@christinebarnum) October 27, 2022

Twitter is set to be delisted from the New York Stock Exchange effective on Friday, according to a delisting notice from the exchange.

NEWS: Twitter is set to be delisted from the New York Stock Exchange effective on Friday, according a delisting notice from the exchange.https://t.co/tKhYjvkKAI

— Sawyer Merritt (@SawyerMerritt) October 27, 2022

Investor’s Business Daily reported:

Twitter (TWTR) shares will be delisted from trading on the New York Stock Exchange on Friday as its deal with Elon Musk is set to be finalized, according to a notice from the exchange. TWTR stock rose.

Musk faced a court-ordered Oct. 28 deadline to close his $44 billion offer to acquire Twitter at a price of $54.20 a share.

TWTR stock edged up 0.7% to close at 53.70 on the stock market today.

“The $44 billion price tag for Twitter will go down as one of the most overpaid tech acquisitions in the history of M&A deals on the Street in our opinion,” Wedbush analyst Daniel Ives said in a note to clients.

TWTR Stock: A ‘Major Head-Scratcher’

Ives added: “With fair value that we would peg Twitter at roughly $25 billion, Musk buying Twitter remains a major head-scratcher that ultimately he could not get out of once the Delaware Courts got involved.”

What happens now will be in the hands of Musk. He tried to pull out of the acquisition offer made in April. However, Twitter pushed Musk to move forward with his original offer.

Musk has sold billions of dollars in Tesla (TSLA) stock in order to help finance the deal. TWTR stock has surged nearly 65% from a four-month low in July.

Investing.com added:

NYSE announced the delisting after reports that banks have started funding their $13 billion portion of the deal, sending Twitter’s stock over 1% in premarket trading Thursday. On Tuesday, Reuters reported that deal backers including Binance, Sequoia Capital, and Qatar Investment Authority, among others, have received the paperwork for their funding commitment from Musk’s lawyers.

Musk, who proposed to buy Twitter at $54.20 per share earlier this year, paid a visit to the company’s headquarters in San Francisco on Wednesday. Tesla’s boss also reinforced hopes that the deal will be closed after changing his Twitter profile bio to “Chief Twit” and location to “Twitter HQ.”

A Happy Ending?

While the delisting notice itself is not a big surprise – given that the court-ordered deadline to complete the deal is set on Oct. 28 – it suggests that the months-long dispute between Musk and Twitter will result in a handshake without further escalation.

Not long after offering to buy Twitter for $44 billion, Musk placed the deal on hold, demanding from the social media company to prove that no more than 5% of its users are bots. Musk estimated that roughly 20% of Twitter accounts are fake and bot accounts, though the social media company fiercely denied those allegations.

In July, Twitter filed a lawsuit against Musk in a bid to try to force the billionaire to complete the deal at the agreed price. Delaware Chancery Court ruled in favor of Twitter, ordering a 5-day trial in October. Musk and his lawyers asked the judge to delay the trial for 2023 but the request was denied, with the judge citing potentially irreparable harm to Twitter if the dispute gets prolonged.