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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