Billionaire investor Carl Icahn has scored a $250 million gain on Twitter stock by calling Elon Musk's bluff, report says
CEO Elon Musk agreed to buy Twitter for $54.20 a share in April, sending its stock price towards that level. However, he tried to back out of the deal over the next few months, prompting a lawsuit and sending Twitter shares down again. As a result, Icahn was able to buy them at a steep discount to Musk's offer.
Twitter stock surged 22% to $52 on Wednesday, after Musk relented and offered to complete his buyout of Twitter at the originally agreed terms. Icahn's stake, assuming he hasn't sold it yet, is now worth about $750 million on paper — a 50% gain in a few short months. Icahn bought into Twitter because he doubted Musk would proceed with a court battle he appeared likely to lose, The Journal reported. The activist investor also pegged Twitter's long-term share value in the mid-$30s, and therefore felt his downside was limited, the newspaper said.
DE Shaw, Dan Loeb's Third Point, and other high-profile investors have also bet on Twitter stock in recent weeks, positioning them to benefit from Musk buying the company, sources told the newspaper. Icahn has made several lucrative bets on technology stocks over the years, including Apple and Netflix. However, he missed out on
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Icahn had Twitter stake worth over $500 mln before Musk's about-face - WSJActivist investor Carl Icahn amassed a Twitter stake worth more than $500 million in the past few months and made a sizable profit on Tuesday after Elon Musk proposed to go ahead with his takeover of the social media platform, the Wall Street Journal reported.
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WSJ News Exclusive | Icahn, Others Clean Up on Musk's Twitter About-FaceCarl Icahn had a Twitter stake worth well over $500 million before Elon Musk’s about-face on buying the company, and made a sizable profit Tuesday after Twitter shares shot up, sources say
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Icahn, other big-name investors clean up on Elon Musk's Twitter reversalElon Musk’s decision to end his war with Twitter Inc. isn’t just a big win for the social-media company, but also for some big-name investors like Carl Icahn.
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Icahn, other big-name investors clean up on Elon Musk's Twitter reversalElon Musk’s decision to end his war with Twitter Inc. isn’t just a big win for the social-media company, but also for some big-name investors like Carl Icahn.
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