Bye-bye, Twitter. The S&P 500 is exiting Twitter (TWTR) from its stock market index on Nov. 1, days after it’s being sold to billionaire Elon Musk.
Global insurance, reinsurance and mortgage insurance company Arch Capital Group (NASD:ACGL) will replace Twitter before the markets open that day, the ratings firm said. Musk’s acquisition of Twitter is set to close tomorrow after months of going back and forth on the purchase and finally being sued by the company.
“Changes to index composition are made on an as-needed basis,” an S&P 500 representative said, adding that there is no scheduled reconstitution.
The S&P 500 offers provisions in its methodology for the deletion of a stock from its index, stating that companies may be removed if they are involved in a merger, acquisition or significant restructuring criteria, and offers additional parameters for their specific removal or reinstatement per committee approval.
Twitter’s stock is also set to be temporarily suspended by the New York Stock Exchange ahead of the deal, according to the exchange’s website.
Yesterday, Musk visited Twitter headquarters, carrying in his arms what appeared to be a bathroom sink, announcing to the world, “let that sink in.” The joke is a glancing reference to Musk’s on-again, off-again, often tortured pursuit of Twitter, which some analysts did not expect the billionaire to complete.