According to a new filing with the US Securities and Exchange Commission, Twitter’s stock will be delisted from the New York Stock Exchange and become a private company on November 8. This comes a day after Elon Musk completed the company’s takeover late Thursday after a lengthy ordeal. In addition, the delisting occurs on the same day as the midterm elections in the United States.
The filing states, “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, in accordance with the provisions of Rule 12d2-2 (a).”
It also indicated the completion of the merger between Twitter and Musk’s subsidiary X Holdings II, Inc. Musk’s X Holdings I, Inc. will now own all of the social network’s stock.
“On October 27, 2022, 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.” Each share of Twitter, Inc. Common Stock was exchanged for USD 54.20 in cash, net of any applicable withholding taxes. The Exchange also notifies the Securities and Exchange Commission that this security was suspended from trading prior to market open on October 28, 2022 as a result of the aforementioned conditions.”
Twitter’s stock was trading at $53.70 at the time of writing, slightly lower than Musk’s purchase price of $54.20. When the company goes private, it will no longer be required to make quarterly disclosures such as its monthly active users or earnings. However, financial institutions that have lent money to Musk will put pressure on him to make the company profitable.
Following the dissolution of the current members, the social media will most likely form a new board. Musk will also have to assemble a new executive team, as one of his first acts as CEO was to fire CEO Parag Agrawal, CFO Ned Segal, general counsel Sean Edgett, and Vijaya Gadde, head of legal policy, trust, and safety. Musk is expected to take over as CEO.
According to Bloomberg, Agarwal will receive nearly $50 million in severance pay, while Segal and Gadde will receive $37 million and $17 million, respectively.
While Tesla CEO Elon Musk denied firing 75% of Twitter’s employees, current employees are still bracing for a massive layoff.