Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Twitter To Be Temporarily Delisted From NYSE As Deadline For Musk Deal Approaches

Published 10/27/2022, 01:00 PM
TWTR
-

Shares of Twitter (NYSE:TWTR) are set to be suspended from the New York Stock Exchange (NYSE) on Friday as the social media company and Elon Musk approach the deadline to finalize the $44 billion deal. The announcement marks a somewhat peaceful ending to the Musk-Twitter saga, which almost resulted in a legal battle of titans.

Banks Begin to Fund Their Portion of the $44 Billion Acquisition

Twitter’s shares will be delisted from the New York Stock Exchange (NYSE) on Oct. 28, according to the delisting notice from the exchange giant. The suspension comes as Elon Musk approaches the deadline this Friday to complete the $44 billion acquisition of Twitter.

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.

Finally, after months of trial preparations, Musk agreed to pursue the deal. However, even though the transaction is set to be closed, the announcement might not be completely celebratory if Musk follows through with his plan to lay off 75% of Twitter staff.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.