Why is Twitter not on Robinhood? The last few weeks have been very busy around Twitter. After several weeks of negotiations, changes of opinion and lawsuits, Elon Musk has finally bought the microblogging platform.
The total amount of the operation reaches USD 44,000 million. Elon Musk has started early with internal changes, setting new goals and executing a restructuring of the workforce.
However, one of the most notable changes is that Twitter stocks or shares are no longer available through platforms like Robinhood, and many wonder why.
Why is Twitter not on Robinhood?
Robinhood Markets Inc. is a platform that allows the purchase and sale of shares/stocks from multiple companies. One of the companies with shares available for trading on the service was Twitter.
However, multiple users have noticed that Twitter stocks or shares are no longer available through Robinhood. This occurs after the completion of the Twitter acquisition by Elon Musk.
In case you’re wondering why, it’s all because Twitter is now a totally private company. This means that Twitter stocks or shares will no longer be available on on the stock market/brokerages/exchanges like Robinhood.
This also directly impacts those who had previously bought Twitter shares. They will not lose their money, but will receive USD 54.20 per share of stock.
Some of the changes that Elon Musk brings to Twitter
In recent days, there has been a lot of talk about how the social platform will change under the mandate of its new and only owner.
One of the main tweaks will impact Twitter Blue, the company’s subscription service. It will be revamped to add new features and will cost USD 8 per month.
Everything that the new Twitter Blue will include is not yet defined. However, Elon Musk has already confirmed that the monthly subscription will include the profile ‘blue tick or check’ for verification.
Musk also plans to completely restructure the company’s workforce. Apparently, the new owner of Twitter found certain practices that he considers inefficient.
So, reports indicate that as of today (Friday, November 4) a layoff process begins that would affect 50% of the current Twitter workforce.
In the past, Elon Musk has also expressed his desire to reduce bots on the platform, end censorship based on political ideology, and more.
It only remains to wait to see how the process turns out in the future.
NYSE delists Twitter shares following Elon Musk acquisition
Social media giant Twitter was officially acquired by Elon Musk on Oct. 27 in a deal that saw a war of words, a court battle and some firings right away. Musk acquired the social network platform at $54.2 per share price, bringing the total value of the deal close to $44 billion.
Musk is also taking the company private as part of the deal, resulting in the delisting of the company’s stock, taking it out of the hands of public shareholders.
Almost nine years after being listed on the New York Stock Exchange in 2013, Twitter is no longer a public company. The NYSE website noted that trading in Twitter shares will be frozen on Oct. 28. Apart from NYSE, crypto-friendly trading platforms like eToro and Robinhood also delisted Twitter shares from their platform.
Twitter going private might not have come as a big surprise for many, given that Musk has floated the idea long before involving it in the deal and even revealed his intention to take Tesla private in the past.
Taking Twitter public will offer Musk certain regulatory advantages and save him a few million dollars in fines. (Musk was fined $40 million for “joking” about taking Tesla private.) Being a public company invites heavy scrutiny from regulators, and Musk has had quite an infamous relationship with the United States Securities and Exchange Commission.
Being a private company will also save Twitter some financial public scrutiny since it will no longer be required to make quarterly disclosures about the health of its business.
The $44 billion acquisition also had a crypto partner in the form of Binance, which reportedly contributed $500 million toward the deal. Binance’s $500 million stake in Twitter makes it the fourth biggest contributor to the takeover.
Reports of Twitter stock not showing up on Robinhood
Robinhood Markets Inc. is a service that allows you to buy and sell equity from a variety of firms. Twitter was one of the corporations with stocks offered for trade on the platform.
Several users, however, have reported that Twitter stocks and shares are no longer active on Robinhood. The change occurred following the execution of Elon Musk’s takeover of Twitter.
A user reported on Twitter: “Looks like Twitter stock is the next GameStop stock. They have removed the ability to buy Twitter shares at least Fidelity Investments… Can anyone confirm @Robinhood? #EatTheRich @Fidelity #Twitterstock.”
Explanation of the change and other Twitter modifications
If you’re curious why this is happening, it may be because Twitter has become completely private. Thus, it means that Twitter stocks or shares are not offered on stock exchanges or brokers such as Robinhood.
“He took the company private. He owns it all and so it doesn’t trade any more,” one person wrote.
This has an immediate effect on individuals who already purchased Twitter shares. Shareholders would not lose any money and will instead get USD 54.20 per share of stock.
Among the most significant changes will affect Twitter Blue, the company’s membership service. It will be redesigned to include advanced functionality and will be priced at $8 per month.
The specific aspects of the new Twitter Blue have yet to be determined. Elon Musk, on the other hand, has previously announced that the monthly membership will come with a ‘blue tick or check’ for profile authentication.
Musk also intends to reorganize the company’s employees entirely. According to reports, Twitter’s current boss has discovered wasteful practices and plans to get rid of them.
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