Twitter’s stock will be delisted from the New York Stock Exchange and become a private company 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. Once the company goes private, it won’t have to make quarterly disclosures like its monthly active users or its earnings. But financial institutions that have lent to money to Musk will pressurize the billionaire to make the company profitable.
The social media 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 Agarwal 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.
While the Tesla CEO squashed the rumors of him firing 75% of Twitter’s staff, the current set of employees are still preparing for a massive layoff spree.