What will happen to Twitter’s stock now that Elon Musk has finalized his takeover of the social media platform?
According to a Securities and Exchange Commission document, the deal to turn Twitter into a private corporation was finalized late on Thursday. By Friday morning, Twitter’s stock, which had been listed on the New York Stock Exchange since 2013, had already ceased trading.
Twitter will then obtain a list of all stockholders as of Thursday night’s closure. Professor of securities law at Boston College Brian Quinn predicts that most shareholders will be represented by brokers.
Quinn stated that these agents will receive the $54.20 payable for each share. That was the purchase price Musk agreed to make for the business, and in September, Twitter shareholders approved it by a 98% vote.
According to Quinn, the majority of Twitter shareholders now have to do nothing but wait to get paid. And the payout ought to occur soon.
Quinn said, “Your broker will take care of all of that; you don’t have to do anything.” It will occur sometime in the upcoming week or so. It’s going to be quick.
However, Twitter shareholders no longer have any ownership stake in the business. As a result, a shareholder cannot attempt to call a new meeting or sue the corporation on behalf of stockholders.
Quinn remarked, “They’d have no standing.” The only option is to wait until you are paid $54.20 per share.
Given the stock market declines other digital companies, including Snapchat and Facebook’s Meta, have seen, Quinn continued, that price provides a fantastic return on investment for the majority of Twitter stockholders.
Regarding the ultimate sale price for Twitter shares, Quinn stated, “It’s better than they could have possible dreamed.”
Twitter’s largest owners were pension funds that invest for teachers, police officers, and state employees in New York, California, Florida, and Wisconsin, in addition to private asset management companies and significant individual stockholders such cofounder Jack Dorsey, Reuters reported.