CEO of Tesla Inc., Elon Musk has bought a huge stake in microblogging social media giant, Twitter according to the filings released by the Securities and Exchange Commission on 4th April 2022. Elon Musk is now the largest outside shareholder in the company.
Musk now owns 73,486,938 equity shares of Twitter, which approximately turns out to be more than a 9% stake in the company which is worth $2.89 billion as per the closing price on 1st April.
Elon Musk becomes the single largest shareholder of Twitter
Twitter co-founder and former CEO Jack Dorsey own a 2.25% stake in the company while Musk is the single largest shareholder with a 9.2% stake as of April 2022.
Musk is super active on Twitter expressing his views on his future plans and general topics as well. Many a time he is seen responding to queries from his customers. Some of his tweets have earlier landed him into legal issues as well.
Twitter stock soars after Elon Musk buys huge stake in it
As soon as the news broke, hectic buying was seen in the premarket trading of Twitter sending the stock up by more than 20% at the time of writing this article.
Investors and traders are betting that even though his stake is classified as a passive stake, there is a possibility of Elon Musk buying more shares in the near future.
Wedbush analyst, Dan Ives, said, “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”.
Elon Musk is quite active on Twitter
Recently, Musk criticized the company for failing to uphold the fundamentals of free speech and tweeted on 25th March, “Free speech is essential to a functioning democracy. Do you believe Twitter rigorously adheres to this principle?”. He conducted a poll where more than 2 million users participated and the majority of them voted “No”.
He asked fellow Twitter users to vote carefully saying the consequences of this poll will be important.
The next day he again tweeted, “Given that Twitter serves as the de facto public town square, failing to adhere to free speech principles fundamentally undermines democracy. What should be done?”. He asked his 80 Million followers, “Is a new platform needed?”.
Given that Twitter serves as the de facto public town square, failing to adhere to free speech principles fundamentally undermines democracy.
What should be done? https://t.co/aPS9ycji37
— Elon Musk (@elonmusk) March 26, 2022
Elon Musk, who is also the founder and CEO of SpaceX is the richest man on planet earth and the first individual to cross $300 billion net worth last year. His current net worth is a whopping $229.1 billion as of March 2022 as per Bloomberg Billionaires Index.
Musk is yet to disclose officially the rationale for buying a stake in Twitter.