![]() Point to note: When Musk acquired a 9.2% stake in Twitter, the company’s shares were trading under $40- not that much more its $26 price when Twitter went public in November 2013 When the news broke, the shares jumped 28%. In the case of Twitter, Musk offered to pay $54.20 per share and they are currently trading under $52. For example, if a company's shares are trading at $10, then the buyout price has to be higher than $10 to make it lucrative enough for public shareholders to sell their holdings. The bulk of investors will receive automatic payouts when the firm formally becomes private, which will be deposited into whichever account was used to purchase the stock. What does the tender offer mean? At some point, Twitter will propose a “tender offer”, which means a proposal to purchase all outstanding shares for a premium at a predetermined time. Currently, Twitter does not have one owner and is instead owned by lots of different shareholders who own different stakes, but once Musk officially acquires Twitter, it will become privately owned by him, which means all the shareholders’ stakes will be sold back to them and Twitter will be delisted from the stock exchange. Twitter has been publicly-traded since November 2013, when it held its initial public offering that raised $1.8 billion. Musk said on Twitter that he would try to keep "as many shareholders in privatised Twitter as allowed by law,”. But until it does, you can buy shares in the social media platform, using a brokerage account. The stock is often owned by a family or a small group of shareholders. What happens when a company goes private? When the company goes private, potential investors will not be able to buy shares in the company and it will be delisted on the New York Stock Exchange. In his letter to Twitter announcing the offer, Musk wrote that the social media giant needed to become private “to go through the changes that need to be made.” As the deal has yet to get the regulator's approval, tthere will not be any immediate changes to the functionality of the website. To make those changes, he intends to take the company private. In the past, he has mentioned rolling back content moderation, and in order to make changes, he intends to take Twitter private. Musk has been extremely vocal about his discontent with Twitter’s board and is adamant about changing the platform. Going private marks a dramatic turnabout for a company that got its start as a messaging service for sharing your status updates with friends, but quickly blossomed into a way for people to broadcast short posts of 140 characters or less to a public following.Twitter caught fire among politicians, celebrities and journalists and took its place alongside social media stalwarts Facebook and YouTube as a standard bearer of a new, more interactive way of using the web that came to be known as Web 2.0. Former Twitter CEO Jack Dorsey, for one, clearly supports Musk’s takeover, tweeting, "Elon is the singular solution” he trusts to make Twitter a successful company. He also said thay he sees “extraordinary potential” but hinted that it couldn’t achieve its full potential under public ownership. In a letter to Twitter, Musk said that Twitter needed to become private “to go through the changes that need to be made”. Musk has secured $25.5 billion of fully committed debt and margin loan financing and is providing an approximately $21.0 billion equity commitment. ![]() Twitter has tremendous potential – I look forward to working with the company and the community of users to unlock it." The transaction, which has been unanimously approved by the Twitter Board of Directors, is expected to close in 2022, subject to the approval of Twitter stockholders, the receipt of applicable regulatory approvals. "I also want to make Twitter better than ever by enhancing the product with new features, making the algorithms open source to increase trust, defeating the spam bots, and authenticating all humans. "Free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated," said Elon Musk. The purchase price represents a 38% premium to Twitter's closing stock price on April 1, 2022, which was the last trading day before Musk disclosed his approximately 9% stake in Twitter. Under the terms of the agreement, Twitter stockholders will receive $54.20 in cash for each share of Twitter common stock that they own upon closing of the proposed transaction. NEW DELHI: Tesla's Elon Musk clinched a deal to buy Twitter for $44 billion cash on Monday in a transaction that will shift control of the social media platform s to the world's richest person.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |