So with $Tesla (TSLA.US)$ Elon buying $Twitter (Delisted) (T...
So with $Tesla(TSLA.US$ Elon buying $Twitter (Delisted)(TWTR.US$ for 54.20, does this mean (me) buying at any price below this guarantees a profit?
I’m new to this and have never experienced a company going from public to private. I read around and I see that apparently shareholders are supposed to receive a tender offer for him to buy our shares from us. Does this mean that no matter what price I buy it at, as long as it’s below 54.20 I will make a guaranteed profit? Is 54.20 the last price that twitter will be before it goes private? Do I have to actively sell it in my brokerage account?
I’m new to this and have never experienced a company going from public to private. I read around and I see that apparently shareholders are supposed to receive a tender offer for him to buy our shares from us. Does this mean that no matter what price I buy it at, as long as it’s below 54.20 I will make a guaranteed profit? Is 54.20 the last price that twitter will be before it goes private? Do I have to actively sell it in my brokerage account?
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Rockyturki : There is no finalized deal yet, and no known date, so the answer is both yes and no
If you're sure that the deal will go through, and are sure that you cannot get 10% on your money on any other play from here until whenever this goes through, then yes.
But all of those are risk factors. Take for example MSFT's offer to buy ATVI at $95 per share (which is way more secure to happen than the TWTR, in my opinion). ATVI is still trading below $80, for the reasons and risks above
TeslaSmurf : The deal is DONE, Elon sold stocks for about 10% of the total value of Twitter (44 Bn) probably required in the contract as 10% initial down payement in cash. Though the proper transaction is written to be closed the day 24 of October 2022 with a possible 6 months extension and a penalty of 1Bn in case the buyer should not accomplish. As the earnings history of Twitter is quite poor and the last results are almost disappointing, no doubt that if the deal should vanish, the stock price would collapse. That risk and the time needed for the perfectionment of the acquisition is what won’t drive the price much higher, at least for now. In my opinion it is not a risk to take now: maybe in September.
Musky : He can walk away from the deal with only 1 billion dollars penalty. So with his 9% share on Twitter. In theory if he gets enough profit from the price now to $54.20. He can walk away smiling while Twitter share holders hold the bag.
HellsGeneral : Always Be skeptical never trust that it’s gonna go up all day when there’s profit of your liking you take it with no regrets even if it still goes up after you sold
Kenneth-CJOP TeslaSmurf:
Kenneth-CJOP HellsGeneral: I will
Kenneth-CJOP Musky: