Icahn had Twitter stake price over $500 million earlier than Musk’s about-face

(Reuters) -Activist investor Carl Icahn amassed a Twitter stake price greater than $500 million up to now few months and made a large revenue on Tuesday after Elon Musk proposed to go forward along with his takeover of the social media platform, the Wall Avenue Journal reported.

Twitter shares jumped greater than 22% to finish at $52.00 on Tuesday after a securities submitting confirmed Musk intends to go forward along with his April provide of $44 billion to take the corporate personal, signaling an finish to a authorized battle that would have pressured Musk to pay up.

Icahn paid within the mid-$30s a share for the stake, the report stated, citing folks aware of the matter. The estimated revenue for Icahn Enterprises LP may exceed $250 million, it added.

Icahn made the funding on the assumption that Tesla (NASDAQ:) Inc chief Musk would not undergo a trial that he appeared prone to lose, the report stated. He additionally believed that the inventory was price near the mid-$30s in the long run.

Different buyers, together with D.E. Shaw Group and Daniel Loeb’s Third Level LLC, additionally positioned bets on Twitter shares in latest months and will make sizable positive aspects as nicely, in keeping with the report.

Third Level and Twitter declined to remark. Icahn Enterprises and D.E. Shaw Group didn’t reply to Reuters’ requests for remark.