For those unaware of the details of the purchase arrangement, Musk put forth a tender offer to take Twitter private at a price of $54.20 per share, for a total purchase price of $44 billion. When the offer was accepted on Monday, April 25, Twitter stock (TWTR) was trading around $51, so it represented a premium to its current stock price (Musk had earlier purchased 9% of the company, and Twitter stock is up more than 40% since that initial buy). As of market close on April 28, Twitter stock is trading at $49.11. This leads some to ask: why shouldn’t I just buy Twitter stock now, knowing that I’ll make a quick profit when it’s taken private at $54.20 per share....?
