New York Stock Exchange to delist Twitter on November 8
The New York Stock Exchange (NYSE) has notified the US Securities and Exchange Commission (SEC) that it will delist Twitter's stock on November 8. The announcement comes a day after Elon Musk completed the acquisition of the microblogging platform for a hefty $44 billion. To recall, Twitter went public on November 7, 2013, and will leave the stock market after a nine-year run.
Why does this story matter?
After several twists and turns befitting a Hollywood movie, the Tesla top boss has finally completed the acquisition of the social media platform. Musk claims that he does not intend to earn money from Twitter. However, this seems like a pipe dream considering the significant funds he has raised from other institutions. Twitter's future is uncertain and will have severe repercussions for the industry.
What does NYSE's filing say?
In its filing, NYSE said, "The New York Stock Exchange hereby notifies the SEC of its intention to remove the entire class of...stated securities from listing and registration on the Exchange at the opening of business on November 08, 2022, pursuant to the provisions of Rule 12d2-2 (a)." The filing also indicated that Musk's X Holdings I, Inc. now owns all of Twitter's stock.
What happens when Twitter goes private?
Once Twitter goes private, the board of directors will be dissolved, shareholders will be paid $54.2 per share, and the company won't have to make quarterly financial disclosures anymore. The company might also bear witness to massive layoffs, though not to the tune of 75% of the workforce, as rumored earlier. There will surely be pressure on Elon Musk to make the venture profitable.
Sacked top officials are getting hefty payouts
Meanwhile, Twitter CEO Parag Agrawal who was fired on Friday, will receive a $42M payout. CFO Ned Segal will get $25.4M, Legal, Public Policy & Trust, and Safety Lead Vijaya Gadde will part ways with $12.5M, and Chief Customer Officer Sarah Personette will get $11.2M.
