The majority of Twitter owners need to be patient and wait for their payment, an expert said.
After Elon Musk has closed on his purchase of the social media site Twitter What will happen to the stock of Twitter?
The deal that made Twitter an independent company was concluded late Thursday evening according to the Securities and Exchange Commission document. In the early morning of Friday Twitter’s stock had been removed from trading on the New York Stock Exchange, which is where it has been listed since 2013.
In the next few days, Twitter will get a list of all those who held shares at the time of Thursday’s closing. The majority of investors will be represented by brokerage firms as per Brian Quinn, a professor of law on securities of Boston College.
Screens show Twitter’s share price in the New York Stock Exchange, on November. 7th, 2013, in New York.
Screens show Twitter’s share price in the New York Stock Exchange, in New York, on Nov. 7, 2013.Emmanuel Dunand / AFP via Getty Images file
They’ll be compensated the $54.20 that is due per shares, Quinn said. This is the amount Musk has agreed to settle for Twitter as well as the price that Twitter shareholders agreed to by an 88% margin in September.
Therefore, the majority of Twitter shareholders have to relax and sit back and wait for their money to be paid, Quinn said. The payout is expected to happen in the near future.
“You don’t need to do anything. Your broker will take care of all the details,” Quinn said. “And the process will take place in the next few days or at least. It shouldn’t take too much time.”
In contrast, Twitter shareholders no longer have any rights to the company. This means that a shareholder can’t plan another meeting, or even sue the company for being a person who holds the stock.
“They’d not have any standing,” Quinn said. “The all you could do is to wait to be paid $54.20 for a share.”
Quinn said that the price offers a high ROI for the majority of Twitter shareholders, considering the market declines that other tech companies such as Snapchat or Facebook’s Meta have faced.
“It’s more than they could had in mind,” Quinn said of the final price of sale in exchange for Twitter shares.
Alongside private asset management companies and major individual stockholders such as co-founder Jack Dorsey, Twitter’s largest shareholders were pension funds which provide funding for police officers, teachers, and state employees throughout New York, California, Florida and Wisconsin.