The New York Stock Exchange has announced it is delisting Twitter stock, following the acquisition of the social media platform by Tesla CEO Elon Musk. A new filing with the US Securities and Exchange Commission said the delisting will take effect on November 8.
The move is in line with Musk’s promise to shareholders to take the company private once he acquires it. Twitter was acquired by the world’s richest man on Thursday, ending months of controversy that have characterized the deal.
“The New York Stock Exchange hereby notifies the SEC of its intention to remove the entire class of the 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 says.
Tekedia Mini-MBA edition 14 (June 3 – Sept 2, 2024) begins registrations; get massive discounts with early registration here.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
Musk reiterated in his letter to advertisers on Thursday, that he didn’t acquire the social media company to make more money but to create a platform where healthy discussions can happen uncensored. A lot of changes are expected to happen in the company as part of the plan to take it private.
According to the SEC filing, the merger between Twitter and Musk’s subsidiary X Holdings II, Inc was complete. Musk’s X Holdings I, Inc. will now own all the stock of the social network.
“The merger between Twitter, Inc. and X Holdings II, Inc., a wholly owned subsidiary of X Holdings I, Inc., wholly owned by Elon R. Musk became effective on October 27, 2022. Each share of Twitter, Inc. Common Stock was exchanged for USD 54.20 in cash, without interest and less any applicable withholding taxes. The Exchange also notifies the Securities and Exchange Commission that as a result of the above-indicated conditions this security was suspended from trading before market open on October 28, 2022.”
Musk bought Twitter at $54.20 per share, way above its market value of $36.81 per share then in April. But the company has since witnessed some growth. Twitter’s stock was trading at $53.70 — slightly lower than Musk’s buying price of $54.20 early Friday.
Taking Twitter private means that the company would no longer have to make quarterly disclosures like its monthly active users or its earnings. Other changes bound to take effect in Twitter include its workforce. Musk reportedly said he would cut the company’s workforce by 75%, retaining only about 2,000 workers. Though he said he doesn’t plan to lay off as much as that number of employees, Twitter executives are already getting sacked.
Musk didn’t waste time firing CEO Parag Agrawal, CFO Ned Segal, general counsel Sean Edgett, and head of legal policy, trust, and safety Vijaya Gadde. This means that a new board will be formed as Musk may not hold on as CEO, which he became on Thursday, for long.
However, taking Twitter private doesn’t stop Musk from making the company more profitable for investors. It was part of his promise when he made the acquisition bid and investors are counting pretty well on it.
In his note on Thursday, Musk touted “advertising done right”, suggesting he will be expanding the quality of ads on Twitter to drive revenue growth.
“I also very much believe that advertising, when done right, can delight, entertain and inform you; it can show you a service or product or medical treatment that you never knew existed, but is right for you. For this to be true, it is essential to show Twitter users advertising that is as relevant as possible to their needs,” he said.