The Wall Street Journal: Icahn, other big-name investors clean up on Elon Musk’s Twitter reversal

Twitter shares jumped 22% to $52 Tuesday. Icahn paid in the mid-$30s a share for the stake, the people said, meaning the estimated profit for his Icahn Enterprises LP could exceed $250 million.

Other big-name investors including D.E. Shaw Group and Daniel Loeb’s Third Point LLC also placed bets on Twitter shares in recent months and could notch sizable gains of their own, other people familiar with the matter said.

Icahn made the investment on the belief the billionaire Tesla Inc. TSLA, +2.90% chief wouldn’t go through a trial that he looked likely to lose, some of the people said. Icahn also believed that the stock was worth close to the mid-$30s anyway in the long term, meaning the downside would be limited even if Musk prevailed at trial.

An expanded version of this report appears on WSJ.com.

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