According to a filing Monday, Elon Musk recently purchased 9.2 percent of the Twitter stock, making him the company’s largest shareholder.
Twitter (TWTR) stock soared 22% in early trading after the transaction was announced. Musk did not say how much he paid for the stock, but it was worth $2.9 billion as of Friday’s closing, and $3.5 billion following the early Monday rise.
The objective of the purchase, as well as any future ambitions for the company, were not disclosed in Musk’s filing. However, he has previously been a vocal critic of Twitter’s regulations. He revealed last month that he was considering developing a new social media platform.
Musk tweeted last month. “What should be done?” “Given that Twitter serves as the de facto public town square, failing to adhere to free speech principles fundamentally undermines democracy.”
When an investor purchases 5% or more of a company’s stock, they must report the transaction to the Securities and Exchange CommissionAlthough a holding of less than 10% in a firm is considered “passive” by Wall Street, it could indicate Musk’s desire to play a more active holding role in twitter’s management.
This is one of the causes that prompted other investors to acquire shares early Monday, causing the price to rise.
“I think he intends to go active and force change at Twitter,” said Dan Ives, tech analyst as Wedbush Securities. “This is a shot across the bow at Twitter’s board and management team to start discussions.”
Can Elon Musk control Twitter?
Musk’s new 9.2% stake by itself does not give him any direct control of Twitter, said Tyler Gellasch, executive director of Healthy Markets Association, an investor trade group
Does Elon Musk own Twitter now?
Musk has a 9.2 percent stake in the social media company, which was disclosed in a Securities and Exchange Commission filing and sent shares up 27 percent. His stake, worth nearly $2.9 billion based on the closing price of Twitter on Monday, now dwarfs that of Dorsey, who owns a 2.3 percent stake.
Why is Elon Musk famous?
Elon Musk co-founded the electronic-payment firm PayPal and founded the spacecraft company SpaceX. He became chief executive officer of the electric-car maker Tesla.
Who is the largest shareholder of Twitter?
How much of Twitter did Elon Musk buy?
Musk has a 9.2 percent stake in twitter
How much did Elon buy Twitter for?
The ultimate aim of Musk’s 73.5 million share purchase, worth about $3 billion, is not known. Yet in late March Musk, who has 80 million Twitter followers and is very active on the site, questioned free speech on Twitter and whether the platform is undermining democracy. It’s unclear just when Musk bought the stake.