Twitter (TWTR) shares will be delisted from trading on the New York Stock Exchange on Friday as its deal with Elon Musk is set to be finalized, according to a notice from the exchange. TWTR stock rose.
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Musk faced a court-ordered Oct. 28 deadline to close his $44 billion offer to acquire Twitter at a price of $54.20 a share.
TWTR stock moved up 1.2% to 53.98 during morning trading on the stock market today.
“The $44 billion price tag for Twitter will go down as one of the most overpaid tech acquisitions in the history of M&A deals on the Street in our opinion,” Wedbush analyst Daniel Ives said in a note to clients.
TWTR Stock: A ‘Major Head-Scratcher’
Ives added: “With fair value that we would peg Twitter at roughly $25 billion, Musk buying Twitter remains a major head-scratcher that ultimately he could not get out of once the Delaware Courts got involved.”
What happens now will be in the hands of Musk. He tried to pull out of the acquisition offer made in April. However, Twitter pushed Musk to move forward with his original offer.
Musk has sold billions of dollars in Tesla (TSLA) stock in order to help finance the deal. TWTR stock has surged nearly 65% from a four-month low in July.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
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Source: https://www.investors.com/news/technology/twtr-stock-up-as-deal-with-elon-musk-set-to-close/?src=A00220&yptr=yahoo