Elon Musk buys 9.2% stake in Twitter, becomes top shareholder
Musk This move follows his tweet that he was “serious” about building a social media platform and questioning Twitter’s commitment for free speech.
Musk is a prolific Twitter user with over 80 million followers. He joined the site in 2009. Musk used the platform to announce several deals, including one for Tesla. This led to him being placed under regulatory scrutiny.
However, he has been critical about the social media platform and its policies in recent months, claiming that the company is undermining democracy through not adhering to free-speech guidelines.
Thomas Hayes, managing director at Great Hill Capital LLC, stated that “it does send a signal to Twitter… having an meaningful stake in the company keeps them on their toes because that passive stake could very soon become an active stake.”
Musk is also one of the richest people in the world. He has been selling his Tesla stake since November when he announced that he would sell 10% of his Tesla holdings. Since then, he has sold shares worth $16.4 billion.
Monday’s regulatory filing revealed that Musk holds 73.5 million Twitter shares. These shares are owned by the Elon Musk Revocable Trust of which he serves as the sole trustee. According to Refinitiv data, Vanguard is Twitter’s second largest shareholder with 8.79%.
Angelo Zino, CFRA Research analyst, wrote that Musk’s actual investments are a small portion of his wealth. He suggested in a client note that he would consider a buyout.
Twitter was the target for activist investor Elliott Management Corp in 2020 when the hedge fund challenged its co-founder and then-boss. Jack Dorsey While running Square, he was not paying enough attention to Twitter.
Dorsey, who holds a greater than 2% share in Twitter, has resigned as CEO and chairman last November. He handed the reins over to a 10-year-old company veteran Parag Agrawal .
Musk and Dorsey are now on the same page in discrediting the Web3, which is a vague term that refers to a decentralized utopian version.
Twitter shares traded at $47.19. Through Friday close, they were trading at $47.19. Twitter didn’t respond to Reuters’ request for comment.
Other social media companies, such as Snapchat and Meta Platforms, share their shares Snap Inc The news also saw a rise in the trading of, which was also higher.