CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Twitter takeover: When will TWTR shareholders get Elon Musk’s cash?

By Jenal Mehta

11:43, 31 October 2022

Twitter button
Musk teases bringing back Vine - Photo: Getty Images

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...

 

What is your sentiment on TSLA?

176.00
Bullish
or
Bearish
Vote to see Traders sentiment!

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.

NVDA

1,143.55 Price
+0.210% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 21:00 (UTC)
Spread 0.35

GME

21.03 Price
-8.860% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 21:00 (UTC)
Spread 0.11

COIN

236.74 Price
-2.970% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 21:00 (UTC)
Spread 0.69

TSLA

176.00 Price
-0.180% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 21:00 (UTC)
Spread 0.24

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.

Related topics

Rate this article

Related reading

Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that Capital.com believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

Still looking for a broker you can trust?

Join the 610,000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading