Elon Musk becomes Twitter’s largest shareholder after buying 9.2%
Tesla CEO Elon Musk bought a 9.2% stake from the social media platform to become Twitter’s largest shareholder. According to Bloomberg, Musk bought the stake on March 14, around the same time he was conducting a Twitter poll asking users about compliance with hate speech on the platform.
Musk’s stake was reportedly worth about $2.89 billion based on Friday’s closing price. Shares of Twitter jumped more than 25% in premarket trading on the news. The Tesla CEO’s stock is reportedly set to be passively held.
Elon Musk toys with Twitter hours after becoming its largest stakeholder: 'Do you want an edit button?' https://t.co/sH3yADbhRM
— Fox News (@FoxNews) April 5, 2022
On March 25, Musk ran a poll on Twitter, asking his 80 million followers: “Freedom of speech is critical to a functioning democracy. Do you think Twitter strictly adheres to this principle? He went on to add that “the results of this poll will be important”.
More than 70 percent of respondents disagreed, with Musk asking if a new platform was needed. He said he was seriously considering starting his own business. It’s unclear what Musk intends to do with his stock, but SEC filings show he frequently uses a form that suggests investors have no intention of buying the company or controlling its management. The acquisition date (March 14) also indicated that the Tesla boss had taken the polls after deciding to become a partial owner of the app.
“It looks like Elon has his sights set on Twitter,” analyst Dan Ives said in a research note, adding that holdings could lead to “more aggressive ownership.”
