Twitter Will Merge With Elon Musk's "X Holdings" By Oct. 24, 2022
Tesla and SpaceX CEO Elon Musk finalized the terms of the $44 billion Twitter deal yesterday, Tuesday, April 26, 2022. The social media outlet will officially merge with two of Musk’s companies coined “X Holdings.”
As we previously mentioned, Musk created three holding companies just last week out of Delaware, naming them all some variation of “X Holdings.” One of the companies will become the official parent company for Twitter as long as everything moves forward as planned.
Musk has owned a lot of companies over the years, and the stepping stone to that success was PayPal, which was originally conceived as X.com. In 2017, PayPal allowed Musk to repurchase x.com, which he purchased and left blank, aside from one small “x” in the top left corner. He’s holding onto it for future use. There has been talk about the CEO combining all of his companies under one umbrella, but that has yet to happen, and Musk hasn’t said much about it.
At any rate, the official information about the Twitter deal came from an official 8-K filing with the US Securities and Exchange Commission (SEC), which was shared by Teslarati. The document lists the merger between Twitter and Musk’s parent company “X Holdings I, Inc.,” as well as the subsidiary “X Holdings II, Inc.”.
It’s important to note that much like any such deal, there’s always a chance something will come up to slow the transaction and/or cancel it altogether, though that’s not typically the case. If all goes as planned, Twitter will be completely owned by Musk’s X Holdings I by October 24, 2022. Teslarati also notes that if Musk or Twitter decide for some reason to terminate the deal, the responsible party will have to pay a fine of $1 billion.
According to the 8-K filed with the SEC:
“The Board also unanimously resolved to recommend that Twitter’s stockholders vote to adopt and approve the Merger Agreement and the Merger.”
Musk will take Twitter private at the originally proposed price of $54.20 per share. Why the October date to finalize the deal? Basically, the agreement states that the transaction will occur within six months of the filing.
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