The Elon Musk-Twitter Inc. TWTR takeover saga is meandering to a conclusion, with the billionaire agreeing to buy the social media platform for the initially agreed-upon offer price of $54.20 per share or $44 billion in total.
What Happened: Billionaire investor and corporate raider Carl Icahn bulked up on Twitter shares in the past few months and has made a “sizeable profit” from Twitter's recent rally, Wall Street Journal reported, citing people familiar with the matter.
Shares of the social media giant have been advancing since early September amid hopes a deal will be worked out between Musk and Twitter.
When the depositions of both Musk and Twitter CEO Parag Agrawal were postponed, the speculation gained ground.
Since Sept. 6, Twitter shares have jumped about 34.5%, and on Tuesday alone, the stock advanced 22.24%.
A Windfall Gain? Icahn bought the Twitter stake by paying mid-$30s per share, suggesting his gains could be in excess of $250 million, WSJ said. Icahn’s conviction that Musk won’t go to a trial that he will likely lose made him place his bets on Twitter, the report added, citing some people. Even if the deal didn’t go through, the downside could be limited, given the mid-$30s purchase price, it added.
Other high-profile investors benefiting from Musk’s rethink on the aborted Twitter deal were D.E. Shaw Group and Daniel Loeb’s Third Point LLC, the report said.
Price Action: Twitter closed Tuesday’s session at $52, up 22.24%, but slipped 0.38% to $51.80 in premarket trading on Wednesday, according to Benzinga Pro data.
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