Twitter takeover: When will TWTR shareholders get Elon Musk’s cash?
By Jenal Mehta
11:43, 31 October 2022
The dragged out Twitter (TWTR) buyout finally closed on the 28 October 2022 as Elon Musk became the sole owner of the social media platform.
The saga began earlier this year as Musk began to voice his frustrations about Twitter, ironically on the platform itself.
He spoke about everything being “wrong” with Twitter, from the edit button and free speech to how the majority of the accounts are potentially bots, which he claimed was hidden from him when he first made a bid claim on the company, and which formed the basis of his defence in the subsequent court case as he attempted to walk away from the $44bn takeover.
Twitter (TWTR) Price Chart
Following multiple court filings, Musk finally succumbed to the offer he made back in April, and closed the all-cash deal seven months later on 28 October for $54.20 per share.
The stock was delisted from the New York Stock Exchange on the same day.
Capital.com has learned that investors are likely to begin receiving their cash very soon, potentially even during this week.
Meanwhile, “Chief Twit” has found a new target...
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When will Twitter shareholders receive their cash?
Part of the court requirement to close the deal was for Musk to provide details on how he will fund this all cash acquisition of Twitter.
The funds have already likely been released from Musk’s side and shareholders are to begin receiving their payments very soon.
Dan Ridsdale, Head of Technology at Edison Group says investors may even begin to receive their payments as soon as today.
He added that the stock will completely cease public trading as of 8 November.
What’s Next for Twitter?
Ridsdale believes that Twitter is likely to see quite a lot of changes under the new ownership.
“Musk has been clear that he feels that he is overpaying for Twitter, but that he has a ton of ideas for the platform, which in his view has languished for a long time. In the longer term, he can develop Twitter into a platform with a valuation an order of magnitude greater than its current value,” he says.
Ridsdale believes that Musk's ability to make significant changes is one of the key benefits of taking the company private.
Under public ownership, radical changes would be very difficult to implement – with quarterly earnings to meet, many shareholders to keep happy and high degrees of scrutiny at all levels. Radical change may well be disruptive in the short term nonetheless.”
Ridsdale said there are conversations being had with advertisers about finding the right balance between free speech and not making the platform a “hellscape”.
Bring back Vine?
Much like how his Twitter idea unfolded in his tweets, Musk has now become vocal about another beloved social media platform, Vine.
He polled his followers earlier today on whether they would like to see the platform return after it ceased its operation in 2017. Twitter had originally acquired Vine in 2012.
This is likely a part of his bigger scheme of building an app simply known as “X” on which he plans to build an online townhouse void of all the problems he believes Twitter currently has.
Bring back Vine?
— Elon Musk (@elonmusk) October 31, 2022
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