Why was Twitter delisted? According to the latest orders issued by the U.S. Securities and Exchange Commission (SEC), Twitter is officially being dropped from the New York Stock Exchange (NYSE). This choice was made coincidentally with this year’s midterm elections taking place across the country.

After months of litigation, in which Elon Musk ultimately conceded defeat and proceeded with the merger of his company X Holdings with Twitter, the US SEC announced its verdict.

Why was Twitter delisted?

Recently, the billionaire CEO of Tesla concluded the purchase of Twitter for 44 billion dollars. Twitter, which made headlines on Nov. 7, 2013, will shortly leave the stock market after nine years due to Musk’s commitment to take the social media business private.

The NYSE informed regulators that it intends to delist Twitter shares on November 8 and that trading in the stock was suspended after SEC’s recent session.

According to the criteria proposed by the filing committee, the SEC decided to bar Twitter from the NYSE. According to the SEC, Twitter is being delisted from the NYSE because Elon Musk’s business now owns all of its shares.

According to the filing, “The NYSE hereby informs the SEC of its decision to remove the whole class of the aforesaid securities from listing and registration on the Exchange at the commencement of business on November 08, 2022, in accordance with Rule 12d2-2 (a).”

The merger of Twitter, Inc. and X Holdings II, Inc., a fully owned subsidiary of X Holdings I, Inc., which is fully controlled by Elon R. Musk, came in effect on October 27, 2022, according to the commission. Without interest and less any applicable withholding taxes, every share of Twitter, Inc. Common Stock was traded for USD 54.20 in cash.

What happens to Twitter as a private company?

Twitter stock has had some turbulence since the beginning of the year, particularly in the months prior to Musk’s takeover proposal and the months that followed, when he tried to call off the merger.

In addition to paying shareholders 54.20 dollars per share and dissolving the public board of directors, which is now led by Salesforce co-CEO Bret Taylor, Musk will formally take Twitter private.

Musk will be free of the pressure that comes with being a publicly traded firm, including the quarterly financial filings, but his investors will put fresh pressure on him.

The richest man in the world couldn’t afford to acquire Twitter altogether, so he borrowed $12.5 billion dollars from Morgan Stanley and other banks as debt financing. In addition, he raised an additional 7 billion dollars from equity investors, including Oracle co-founder Larry Ellison, Saudi prince Alwaleed bin Talal, and the cryptocurrency company Binance.

Elon’s story of the Twitter takeover?

A remarkable saga with many twists and turns that raised questions about Musk’s ability to execute the deal culminated in the 44 billion dollar acquisition. It all started on April 4, when Musk revealed that he was the San Francisco company’s top stakeholder with a 9.2% stake.

The richest man in the world then agreed to join Twitter’s board, but changed his mind at the last minute and proposed to buy the firm instead for 54.20 dollars per share. Twitter wasn’t sure whether to take this as another of Musk’s references to marijuana or not.

Musk’s offer was genuine, and the two parties eventually came to an agreement on his estimated amount over the course of just one weekend later in April.

This occurred without Musk performing any due diligence on the company’s proprietary information, as is normal in an acquisition.

Following those weeks, Musk had second thoughts. He expressed public displeasure about Twitter’s estimate of less than 5% of its monetizable daily active users, saying he thought the number of spam accounts was substantially higher. Then, according to his attorneys, Twitter ignored his demands for information on the matter.

Due to the growing tension, Musk informed Twitter on July 8 that he was ending their business relationship and that Twitter had misled him over the bots and had not cooperated with him. Twitter filed a lawsuit against Musk in Delaware, where the business is incorporated, four days later to compel him to finalise the transaction.

Twitter will be delisted from the New York Stock Exchange on November 8

Twitter’s stock will be delisted from the New York Stock Exchange on November 8, according to a new filing with the U.S. Securities and Exchange Commission. This comes a day after Elon Musk completed the company’s takeover after a lengthy ordeal late Thursday. Incidentally, the delisting is taking place on the same date as the U.S. midterm elections.

“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 reads.

It also indicated that 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.”

At the time of writing, Twitter’s stock was trading at $53.70 — slightly lower than Musk’s buying price of $54.20. Twitter won’t have to make quarterly disclosures like its monthly active users or its earnings as a private company. But financial institutions that have lent money to Musk will pressure the billionaire to make the company profitable.

The social media company will likely form a new board after the current members will dissolve. Musk will have to also pick a new executive team, as one of his first steps after taking over was to fire CEO Parag Agrawal, CFO Ned Segal, general counsel Sean Edgett and head of legal policy, trust and safety Vijaya Gadde. Musk is likely to assume the CEO position for the time being, but he might hand it over to someone else in the long run.

A report from Bloomberg noted that Agrawal is set to receive nearly $50 million while Segal and Gadde will get $37 million and $17 million each as part of the severance package.

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