If you owned Twitter (TWTR) stock before the buyout, you are entitled to receive a payout for the value of your shares. The price agreed upon between Musk and shareholders was $54.20 per share. Payouts were made at the end of October 2022.
How Do I Buy Twitter Stock
Twitter stock was delisted from the NYSE on November 8, 2022 after billionaire investor and Tesla CEO, Elon Musk, bought all the company's outstanding shares for $44 billion ($54.20 per share) and took the company private.
This comes after weeks of back-and-forth as Musk purchased a large amount of the company's stock and then forced the board to take the 'poison pill' to avoid a hostile takeover. Musk has been very public about his discontent with Twitter's board of directors and is adamant about changing the platform. He's mentioned rolling back content moderation and implementing a largely-asked-for edit button on published tweets.
However, once Musk follows through on his promise to take the company private, the ability to buy more shares will be over. But even though the deal was struck today, you'll still be able to buy or sell Twitter stock until the deal is closed.
So if you desire to have an ownership stake in the future of Twitter before it's taken private, you'll need to open a brokerage account where you can buy and hold your stocks. It's free to open an account with brokerages like Fidelity, Robinhood or Vanguard, which let you buy and sell stock for free.
"Depending on how long you've owned Twitter stock, you would be subject to short-term capital gains or long-term capital gains when the tender happens. You should consult with a tax specialist before making a decision just as you would before making any other trades or financial decisions in regards to the taxation of your taxable portfolio," according to Anastasio.
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Elon Musk, together with his group of investors, owns 100% of Twitter stock. They bought it from the public market, so the $44 billion he paid went to the shareholders. Jack Dorsey, the founder, was an exception. He was allowed to retain his shares, which amount to 2.4% of the company.
WallStreetZen does not provide financial advice and does not issue recommendations or offers to buy stock or sell any security.Information is provided 'as-is' and solely for informational purposes and is not advice. WallStreetZen does not bear any responsibility for any losses or damage that may occur as a result of reliance on this data.
Twitter said Thursday it had received "an unsolicited, non-binding proposal from Elon Musk to acquire all of the company's outstanding common stock" and would "carefully review the proposal to determine the course of action that it believes is in the best interest of the company and all Twitter stockholders."
Musk is presently Twitter's largest stockholder, having disclosed in early April that he'd amassed a 9.2% stake in the company. The Tesla and SpaceX CEO is also the world's richest person, with a fortune estimated at $259 billion.
Per the SEC filing, in his letter to Taylor, Musk hinted that he might sell his Twitter stock if his takeover offer was snubbed. "My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder," he wrote.
Musk has offered to buy all the Twitter stock he doesn't own for $54.20 per share in cash. The offer represents a premium of 54% above the stock's closing price on January 28, the day before Musk began buying into Twitter, and 38% above the closing price on April 1, the day before Musk unveiled his 9.2% stake in the company, according to the SEC filing.
If the deal goes through, Twitter will become a private company. Investors wouldn't be able to buy Twitter stock anymore, and existing shareholders would get a payout of $54.20 for every share they own.
Ads by Money. We may be compensated if you click this ad.AdBuild a portfolio through a unique investing experiencePublic.com lets you invest in stocks, ETFs, and crypto with any amount of money. Share insights in a community and access a wealth of educational content.HawaiiAlaskaFloridaSouth CarolinaGeorgiaAlabamaNorth CarolinaTennesseeRIRhode IslandCTConnecticutMAMassachusettsMaineNHNew HampshireVTVermontNew YorkNJNew JerseyDEDelawareMDMarylandWest VirginiaOhioMichiganArizonaNevadaUtahColoradoNew MexicoSouth DakotaIowaIndianaIllinoisMinnesotaWisconsinMissouriLouisianaVirginiaDCWashington DCIdahoCaliforniaNorth DakotaWashingtonOregonMontanaWyomingNebraskaKansasOklahomaPennsylvaniaKentuckyMississippiArkansasTexasStart InvestingOffer valid for U.S. residents 18+ and subject to account approval. There may be other fees associated with trading. See Public.com/disclosures. Can you still buy Twitter stock? Twitter's stock is still trading on the New York Stock Exchange (NYSE) as Musk's deal faces shareholder and regulatory approval, which means you can buy shares if you want to.
According to Musk's deal, shareholders will get paid $54.20 per every share of Twitter they own. As of Thursday's close, Twitter was trading near $49 per share, which means an investor who buys the stock at that $49 will earn the difference between that price and $54.20 when the transaction close. That's a 10.6% gross pre-tax return.
Buying the stock of a company before it's expected to get acquired involves a lot of volatility, and should only be taken on by investors with a tolerance high enough for that risk, says David Sekera, chief U.S. market strategist for Morningstar.
On top of the possibility that the deal fails and the stock price falls to the pre-acquisition price or below, there's also the risk that the approval drags out longer than expected, which means the return on an annualized basis could drop. (The annualized rate of return is a way to calculate investment returns on a yearly basis and compare one of your investment's returns to another's.)
Ads by Money. We may be compensated if you click this ad.AdTime in the market beats timing the marketThe brokerage you choose matters. Try Public.com, the investing platform helping people become better investors. See what makes us different.Start InvestingOffer valid for U.S. residents 18+ and subject to account approval. There may be other fees associated with trading. See Public.com/disclosures/. What are some better investment options? There are much better opportunities out there than trying to make money off of Twitter's stock before the company gets acquired, says Angelo Zino, senior industry analyst at CFRA.
If you're interested in more speculative social media stocks, he suggests looking at Pinterest. While the company isn't seeing the same engagement levels it did during the pandemic when everyone was stuck at home with little to do but scroll on the internet, the company is doing "an unbelievable job monetizing the platform right now," Zino says.
The compensation surged primarily due to a $15.5 million stock award and $450,000 in non-equity incentive plan pay, both of which were substantial increases over the respective $6.6 million and $144,000 she earned a year earlier. Her base salary remained flat at $600,000.
Gadde owns Twitter stock valued at more than $29 million, according to Bloomberg data. Securities filings show that within the past year she has sold off more than $4.3 million in company stock. Gadde is also a board member at Guardant Health Inc.
One of them is GoDaddy Inc., which in a preliminary proxy filed April 1 disclosed its new legal chief Michele Lau received more than $6.7 million in total compensation last year. Almost $6.2 million of that sum was comprised of stock awards.
The share price of Twitter, Inc. (TWTR) is little changed year-to-date, a far cry from its internet peers, who have mostly seen their stocks plummeting amid the Great Reset. Twitter shareholders have Elon Musk to thank as the enigmatic Technoking of Tesla, Inc. (TSLA) disclosed his approximately 9% stake in the social media platform in early April.
Elon Musk has purchased 9.2 percent of Twitter's stock, he revealed in a Securities and Exchange Commission filing on Monday. The Tesla and SpaceX CEO bought 73,486,938 Twitter shares on March 14, the filing said.
Financial analysts said that Musk's stock purchase could signal an attempt to influence Twitter's leadership. "We would expect this passive stake as just the start of broader conversations with the Twitter board/management that could ultimately lead to an active stake and a potential more aggressive ownership role of Twitter," Dan Ives of Wedbush Securities wrote in a client note, according to NPR.
Twitter's shares jumped more than 25% in price following Monday's news. Musk now controls nearly 73.5 million shares of the company, making him the largest shareholder, and individual stocks were priced at $49.81 on Monday morning.
Tesla CEO Elon Musk agreed to buy Twitter for $54.20 a share in April, sending its stock price towards that level. However, he tried to back out of the deal over the next few months, prompting a lawsuit and sending Twitter shares down again. As a result, Icahn was able to buy them at a steep discount to Musk's offer.
Icahn has made several lucrative bets on technology stocks over the years, including Apple and Netflix. However, he missed out on pocketing as much as $40 billion by selling his stakes in both of those companies several years ago.
Investing can be seen as a complex subject, but there are ways to make your investments more accessible. Many free stock apps simplify the investing process and have democratized access through the elimination of stock commissions.
That means you can buy one share at a time without having to fork over a per-trade commission. Some apps will allow you to set aside money regularly to buy fractional shares, lowering your barrier to investing in these growth stocks even more.
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