Twitter: After its acquisition by Elon Musk, when will Twitter be released from the New York Stock Exchange?

(BFM Bourse) – According to a document filed with the SEC, the American stock market supervisory body, the New York Stock Exchange plans to remove the social network at the opening of the session on November 8. The price of $ 54.20 offered by Elon Musk offers a great way out for its shareholders at a time when other social networks are suffering severely on the stock market.

Nine years after its highly publicized arrival on the New York Stock Exchange, Twitter is preparing to retire from the NYSE. On the night from Thursday to Friday, Elon Musk finalized the acquisition of 100% of the social network for $ 44 billion, at a price of $ 54.20 per share. The blue bird will now merge with X Holdings, a company created by the billionaire and founded in Delaware last spring.

All Twitter shareholders received a cash payment of $ 54.20 per share in exchange for their participation, such as he explains it to NBC News Brian Quinn, Professor of Securities Law at Boston College.

Twitter, whose share is suspended on the New York Stock Exchange, will be officially canceled in a few days. According to a document registered with the Securities and Exchange Commission (SEC), the policeman of the American stock market, and spotted by several American media not TechCrunchthe New York Stock Exchange intends to withdraw Twitter shares from the stock market as of the November 8 session opening.

Immerse yourself from other social networks

The exit door offered to Twitter shareholders proved to be nothing short of generous. Elon Musk himself admitted two weeks ago that he had “overpaid” for this acquisition, while showing his confidence in the group’s long-term potential.

Over the whole of 2022, the price of $ 54.20 per share allows Twitter to mark an increase of about 25%. This price also represents more than double the group’s IPO price – $ 26 per share – when it went on the New York Stock Exchange on November 7, 2013.

At the same time, other social networks have collapsed on the stock market in recent months. Since the beginning of the year, Meta Platforms, the parent company of Facebook and Instagram, has fallen by 71%, Snap Inc has fallen by 78.5%. Pinterest is doing better, with a limited 30% drop since January 1.

The dependence of these values ​​on online advertising penalizes their prices, at a time when economic concerns are acute and significant cuts in advertisers’ budgets are looming. Competition from other platforms also weighs, in particular from TikTok, owned by the Chinese group Bytedance.

Another factor explaining their downfalls: changes to Apple’s privacy policy requiring all apps to obtain permission from smartphone users to be tracked online, Bloomberg highlights. This change made it more difficult to monetize audiences through targeted advertising.

A winning investment for everyone except … Elon Musk

Against this backdrop, Twitter shareholders are doing lightly. “It’s better than they could have imagined,” said Brian Quinn.

“The $ 44 billion acquisition price will certainly go down in history as the most exaggerated amount to acquire a technology company,” said Wedbush analyst Dan Ives. “With an estimated company value of around $ 25 billion, this deal remains a huge question mark that Musk himself was unable to extricate himself from once a Delaware court was involved in the case,” he recalls.

by Barronthe financial magazine of Wall Street newspaper to conclude: “Twitter was the best investment in technology for everyone, except perhaps Elon Musk.”

Julien Marion – © 2022 BFM Stock Exchange