Musk’s love for Twitter is old news, but him becoming Twitter’s biggest shareholder just came in!
The platform’s shares skyrocketed after news that Tesla and SpaceX boss holds 9.2% stake.
Less than two weeks after tweeting about the importance of free speech and asking if users agree that Twitter adheres to the principle, a document filed with the US Securities and Exchange Commission shows Elon Musk bought nearly 73.5 million Twitter shares.
Free speech is essential to a functioning democracy.
Do you believe Twitter rigorously adheres to this principle?
— Elon Musk (@elonmusk) March 25, 2022
In his tweet, Musk warned that the consequences of the poll would be important, and a day later, he turned to the Twitter community again to ask if a new platform was needed.
After it was disclosed that Tesla’s CEO acquired a significant stake in the social media company, Twitter’s shares soared toward the biggest gain in nearly six years. The TWTR stock has risen almost 29% in the past five days and currently stands at $50.87 (approximately £38.80).
At Friday’s closing price for Twitter’s shares, Musk’s 9.2% stake would be worth $2.89 billion (approximately £2.21 billion), but taking current prices into consideration, the stake is worth about $3.47 billion (approximately £2.65 billion).
Tesla’s co-founder now has more than quadrupled the shares of Twitter’s founder Jack Dorsey, who owns 2.25%.
Musk is considered one of the most influential Twitter users. He’s managed to single-handedly influence a couple of cryptocurrencies prices with a single tweet.
Musk’s stake in Twitter is considered a passive investment, meaning he is a long-term investor looking to minimise his buying and selling of the shares.
Dan Ives, the Managing Director and Senior Equity Research Analyst covering the Technology sector at Wedbush Securities, wrote: “We would expect this passive stake as just the start of broader conversations with the Twitter board/management that could ultimately lead to an active stake and a potential more aggressive ownership role of Twitter”.
Mr Ives also told CNBC: “Musk could try to take a more aggressive stance here on Twitter. This eventually could lead to some sort of buyout. This makes sense given what Musk has at least been talking about, at least from a social media perspective”.