Could Elon Musk pay $1 Billion to kill the deal to take Twitter private?

Elon Musk's deal to take Twitter private could fall apart. Here's how and why. PLUS: What happens to your Twitter shares if the deal closes? Can you still trade Twitter shares?
On Monday, April 25th the headlines declared that Elon Musk had acquired Twitter for $44 billion. Which would lead one to believe the deal is done. It is not.
In this video you are going to learn: What happens if you own Twitter shares and the deal closes. Can you still buy and sell twitter shares now that a deal to take the company private has been announced? Will the deal actually close, or could it fall apart? And this has been a popular question: the deal price is for $54.20 a share, and twitter’s stock price is less than that right now. A lot of people think that buying twitter shares now with the expectation that you’re guaranteed to get 54.20 when the deal closes is “easy money”. But you might be surprised to learn that, that may not be the case.
This is Round 3 in the Elon Musk Twitter saga.
00:00 Intro
00:57 Details of the deal to take Twitter private
02:01 What happens if everything goes according to plan?
04:35 What happens to your Twitter shares if it goes private?
05:03 Can you still buy or sell Twitter shares?
06:40 Why the deal could fall apart
#twitter #elonmusk #tesla
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[@cespinosa565]

I love how Preet does his videos:good intonation, clear speaking (sound and script), great scenery, timing and above all the knowledge-message he puts in on each one. I might reference him from now on as one of the best KZbinr. Keep on!

[@PreetBanerjee]

WOW! Thank you for the super kind words! I truly appreciate it!

[@sincerelycai854]

I second that. I had also told him that the way he speaks is music to ears. No unnatural or artificial slang. That’s just the way he speaks. Great intonation, pronunciation, right pauses n no need to look at video to digest his message! More importantly, the contents are great n easy to understand. One of the best to date.

[@shawn.kanungo]

Preet needs to buy KZbin. Killin it!

[@PreetBanerjee]

Haha - thanks buddy! I was actually just thinking of you today as I was trying to figure out what pizza to get tomorrow 😂

[@cherylhurst]

Another incredible video preet. Will you ever do a tutorial on how you make these types of videos? They must take you ages to research, film, and edit 🥹

[@littleninjai222]

Another superb video. Thank you, Preet for your insights and continuous education on financial topics. It will be really fascinating to see if this deal closes. Working in M&A, I do at least know, it's not over and a lot can still happen leading up to the 'close date'. I really appreciate you answering the question regarding shares. Thank you for doing that and for your comments below. Always something to learn from you and your videos.

[@PreetBanerjee]

Thanks LittleNinjai! What kind of work do you do in M&A?

[@littleninjai222]

@@PreetBanerjee Integration of the target company into our tech company specifically related to all things related to their Sales, Marketing (people), and Channel Partners.

[@fabioscocimara8597]

Love the video! Twitter may also have a couple of skeletons in the closet. I have heard many times that a lot of the traffic they have is driven by bots. Should this come to light during the due diligence process things may evolve quite differently for them and we could see the shares drop to 44.20 :) !

[@PreetBanerjee]

Good point. There are many ways this could all go wrong from here. The servicing cost of the loans may also be challenging given the revenue is so lumpy (if the deal closes). That’s a lot of risk. If they find that any fake traffic/bots are putting up false numbers that ad buys are tied to, it would certainly be a further concern. Cheers!

[@NataliBall-tc8pv]

Only boys left on X now, EVRYONE naive idiots why believe him with electronic maney - Bitcoin left and sad bay before New Year 2024 .now all comments against Elon, that's why he made comments only privet( nobody see nothing except some bots Wich poot Musk on God position. 😅

[@luispena8881]

One thing you can bet is Tesla stock price will bounce regardless if musk does or doesn't buy twitter. .

[@whatsppme4917]

👆.👆

[@nthn0011]

Love the videos! Can you share some analysis on whether real estate investing in today’s time is a good one or not?

[@PreetBanerjee]

I can certainly add that to my list. I have an old video that needs to be revisited on that topic.

[@nthn0011]

Thanks Preet - I’m in the process of doing some analysis myself but with interest rates climbing, home prices increasing… the numbers for me don’t make sense but maybe you can shed some insights that I might have missed

[@multirichardb]

What are the actual odds against the deal going complete, 1 - 10?

[@PreetBanerjee]

Reuters calculated it at 62% at one point. I forget who, but some other firm had it closer to 84%. But I believe these are just models based on the discount of the share price to the offer price so they are effectively pricing in uncertainty into those numbers unless the market price truly reflects the intrinsic price I suppose. There will likely be quite a bit of share price volatility.

[@PreetBanerjee]

www.reuters.com/technology/investors-fret-over-potential-musk-u-turn-44-bln-twitter-buyout-2022-04-27/

[@multirichardb]

@@PreetBanerjee My later comment continues to remain the same. All of these projections are in the abstract, we must be careful to abstract conclusions that are based on principle not on erroneous projections that aren't distilled thoroughly through axioms that pertain to our own personal experiences. Also, principle or 2 x 2=4 doesn't care about people's projections, what Elon concludes is his own affair, and is non-dimensional. This is based on Aristotle's syllogism, which is a mathematical certainty. We need this deal to finalize because the subhumans continue to foster challenges that aren't sound.

[@neolithic3]

@@multirichardb You must be a lot of fun at parties....

[@multirichardb]

@@neolithic3 What the hell does this have to do with Elon buying Twitter?

[@SingItSandra]

He will be just fine. He has nothing to worry about,

[@PreetBanerjee]

I think that is probably true no matter how this turns out 😊

[@theeternal6890]

*Dont worry Twitter won't fall apart.*

[@multirichardb]

Do you not imagine much less think that Elon Musk didn't look into this before making his offer?

[@PreetBanerjee]

Don't know. He allegedly misfiled paperwork along the way, and might be in danger of getting margin calls because he has put up so many Tesla shares up as collateral on lots of stuff and the market response might have been larger than he forecast, so I don't know.

[@multirichardb]

@@PreetBanerjee Exactly, it's interesting to me how people with no skin in this deal, continue to comment thru assumptions that really have no sound conclusions.

[@RawLu.]

Don't care about that Foreigner & that Foreign business in that Foreign country. Talk about Canada & Canadian Billionaires etc. for once in our history?... Americanization 24/7/365...

[@neolithic3]

Musk is an utterly vile person.

[@user-hx7yi6wx5k]

Cry harder

[@mfundomkhize2337]

Why is he vile?

[@petef15]

Hopefully they take eachother out. Twitter sucks. Elon sucks. Win/win.

[@mfundomkhize2337]

Why does Elon suck?