We’ve talked about Elon Musk and Twitter (TWTR) a lot recently, but it now seems that the deal is nearly official.
While the final details of the transaction haven’t been revealed yet, they’re in the works.
This process will take time and potentially last a few months as the attorneys, U.S. Securities and Exchange Commission (SEC) and everyone else with their hands in the deal do their parts.
Most think it is just a matter of signing over some papers. But it’s a much more complicated process than that.
Just as it’s a process to take a company public, there’s a process to take a public company private as well.
Twitter management has a fiduciary responsibility to their shareholders, and the SEC is going to make certain that it’s fulfilled.
What does this mean for current shareholders? My initial thought is that they’ll be paying each shareholder $54.20 per share at the time of the sale closing.
However, I’m not sure if that’s actually going to be the case or not. I imagine TWTR will continue to trade publicly until the time comes to seal the deal.
Will folks pile into all the dips knowing that they’ll get paid out at the offering price?
I’d like to believe it’s that simple, but I’m not sure…
Those who have asked me are getting the same answer I’m sharing with you today…
It’s just too early to know what the deal is yet.
There are a lot of moving parts, but I’m sure as the details become clearer, we’ll be able to hypothesize what the exit looks like for shareholders.
As always, time will tell.
Meanwhile, many are excited to see what the next phase of Twitter is going to look like.
Hopefully, we’re in for a revitalized social platform!
Stay tuned for updates as they become available, and I’ll let you know if there are any trading opportunities as they develop.
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Rules to Live By
“Letting go means to come to the realization that some people are a part of your history, but not a part of your destiny.” Steve Maraboli
Until next time, I wish you a beautiful and blessed day!
Yours In Trading Success,
Anthony Speciale Jr.