What Investors Should Know About Elon Musk Buying Twitter (TWTR)

 

All you need to know about Elon musk and Twitter.


Frequently Asked Questios

Has Twitter been bought by Elon Musk?

  Elon Musk has finally acquired Twitter after a weekslong saga during which he first became the company's largest shareholder, then offered to buy it outright. The world's richest person secured a deal on Monday, agreeing to buy the social network for $54.20 a share — valuing the firm at roughly $44 billion.



What Happens to Twitter (TWTR) Stock After Musk Deal?

  Twitter Stock Advances 6.4% After Elon Musk Agrees to Buy

 Twitter Inc. shares climbed after the social-media company accepted Elon Musk's bid to take over the company. Shares of the company rose 5.7% Monday to close at $51.70, their highest closing value in about five months.

What will happen to Twitter shareholders?

  If Elon Musk's purchase of Twitter closes, Twitter shareholders will receive $54.20 in cash for each share, and the company will become private.

Can I still own Twitter stock?

  Until the company has been granted regulatory approval and is taken private, no immediate changes to the functionality of the website will happen and anyone can buy shares of the social media platform, using any brokerage firm. Once Twitter goes private, potential investors will not be able to buy shares.


What happens if I buy Twitter stock now?

 If the owner buys and sells the asset within a year, the profits are taxed as ordinary income. That means it's subject to the income tax brackets that run from 10% to 37%. If you buy Twitter stock now, and the deal closes in 2022, there will be a short-term capital gain at the higher rate on any profit.



Who owns Twitter?

 Elon Musk has finally acquired Twitter for $44bn, with its co-founder Jack Dorsey throwing his weight behind the Tesla chief. Given that Twitter is a publicly-traded company, there are many investors who hold shares of the micro-blogging site.



What Investors Should Know About Elon Musk Buying Twitter (TWTR)


  Elon Musk, the billionaire CEO of Tesla, Inc. (TSLA) and the richest person in the world, is moving forward in his bid to buy social media giant Twitter, Inc. (TWTR). Twitter's board of directors agreed to Musk's $44-billion offer on April 25, paving the way for the billionaire to buy the company and take it private.

  The back-and-forth between Musk and Twitter has been highly publicized for months. Now that a deal is pending, though, investors will look more seriously into how Musk's purchase could affect their investments. The ramifications are particularly significant for Twitter shareholders and the social media company's users. Below, we explore some of the ways that the Twitter deal could affect you.

As a private company, Twitter will not be required to report on its financial performance in the same way that it has as a publicly traded firm. For investors in the social media and tech industries, this means less transparency overall from one of the biggest players.

Impacts for Twitter Users


As sole controller of Twitter, Musk would also be able to enact a variety of platform changes, including several that he has speculated about or advocated for in public. Musk has expressed his interest in adding an "edit" button that would allow users to go back and change tweets they have already posted. This is also a hotly contested question and one that Twitter's leadership has so far resisted.2

Musk has also voiced his intention to "make the algorithms open source to increase trust" and to "authenticat[e] all humans." These and other objectives are geared toward the goal of ensuring that Twitter allows for free speech, according to Musk.2 It is difficult to say exactly how these changes could affect the everyday Twitter user, but it's possible that users will need to submit additional information for verification, that rules regarding acceptable content could be changed, or that users who have been banned may be allowed
 back onto the platform, for instance.

How will the user experience change when Musk buys Twitter?


This is difficult to say. Elon Musk has suggested that he may change elements of the platform itself, including adding an "edit" button. Policies surrounding acceptable content may change, as may verification requirements for users. But there could also be a variety of other changes that are currently unknown.

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