Do I have to Give All My TWTR Shares to Elon?

Apr 26, 2022 | Macro Insights

Short answer, yes. After Elon buys Twitter, it will no longer be a publicly traded company (with shares that can be bought & sold on the stock exchange). However, for the buyout to proceed, everyone has to “tender” their shares to Elon’s buying group for the agreed upon purchase price ($54.20 per share). Those that currently own TWTR shares will have to trade them for cash when the deal closes. 

If that is the case, why is the stock trading at $50 today? Shouldn’t it be trading at $54.20? NO! What if the deal falls-through and the stock sinks back to previous levels? Elon’s $54.20 bid to buy Twitter represents a +54% premium since 1/28/22 when he first invested in Twitter and a +38% premium since 4/1/22  (April fool’s day) when he publicly announced his offer.

Are TWTR shares worth $54.20? Maybe if the deal goes through and Elon can work his magic. Is there risk owning these shares at the current price? Certainly, but no risk, no reward…

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Disclaimer of Liability: Although the information in this post has been obtained from sources NBE Media LLC believes to be reliable, NBE does not guarantee its accuracy. The views expressed herein are subject to change without notice and in no case can be considered as an offer or solicitation with regard to the purchase or sales of any securities. NBE Media LLC’s analyses and opinions are not a guarantee of the future performance of the economy nor any industry, company or security. NBE Media LLC disclaims all liability for any misstatements or omissions that occur in the publication of this post. In making this post available, no client, advisory, fiduciary or professional relationship is implied or established. While this post is intended to provide an relevant economic analysis, it cannot be used as a substitute for independent investigations and sound business judgment.
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