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Twitter stock will be delisted from the New York Stock Exchange and become a private company on November 8, according to a new filing with the US Securities and Exchange Commission. This comes a day after Elon Musk completed his takeover of the company late Thursday after a long struggle. Coincidentally, the list takes place on the day of the US midterm elections.
“The New York Stock Exchange will notify the SEC of its intention to dispose of and record in the register a whole class of the securities described at the opening of business on November 8, 2022 (November 8, 2022) pursuant to Rule 12d2-2(a),” the filing said.
It also marked the completion of a merger between Twitter and Musk’s X Holdings II, Inc. Musk X Holdings I, Inc. Now he will own all the shares of the social network.
Entirely by Elon R. X Holdings I, Inc. is owned by Musk. A subsidiary of Twitter, Inc. and X Holdings II, Inc. The merger took effect on October 27, 2022. Each Twitter, Inc. The common stock was exchanged for $54.20 in cash, without interest and less any withholding taxes. Prior to the market opening on October 28, 2022, it will notify the Securities and Exchange Commission that this security has been suspended from trading due to the specified circumstances.
As of this writing, Twitter stock was trading at $53.70 — slightly less than Musk’s purchase price of $54.20. Once the company is private, it doesn’t have to make quarterly disclosures like its monthly active users or revenue. But the financial institutions that have lent money to Musk are pressuring the billionaire to make the company profitable.
A new board of social media will be formed after the existing members are disbanded. One of Musk’s first steps after taking over will be to select a new executive team, including CEO Parag Agrawal, CFO Ned Segal, general counsel Sean Edgett and head of legal policy, trust and security Vijay Gade. Musk may take the CEO position for the time being, but in the long run it may be given to someone else.
According to a Bloomberg report, Agarwal is set to earn nearly $50 million, while Segal and Gade will receive $37 million and $17 million each as part of the severance package.
While Tesla’s CEO squashed rumors of firing 75% of Twitter’s workforce, the current pool of employees is still gearing up for major layoffs.
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