Elon Musk buys major stake in Twitter

Bloomberg

Elon Musk took a 9.2% stake in Twitter Inc. to become the platform’s biggest shareholder, a week after hinting he might shake up the social media industry.

Twitter shares surged as much as 26% after Musk’s purchase was revealed Monday in a regulatory filing, the stock’s biggest intraday increase in more than four years. The stake is worth about $2.89 billion, based on Friday’s market close.

Musk, 50, polled his more than 80 million followers on Twitter last month, asking them whether the company adheres to the principles of free speech. After more than 70% said no, he asked whether a new platform was needed and said he was giving serious thought to starting his own.

This entry was posted in Current Events, Free Speech, Social Media. Bookmark the permalink.

11 Responses to Elon Musk buys major stake in Twitter

  1. weather257 says:

    From what I understand, they’re passive non-controlling shares. If that’s the case, all he’s doing is funding them.

    Liked by 2 people

  2. Pa Hermit says:

    I’ve been entertaining the leaving of all social media sites. FB is long gone, never was on any of the others except this one. I’m not paying to get on Trump’s site. The f’ing Left wants to curtail free speech, I’m going bye byes! It’s not stopping here either. They want digital money and digital ID’s. F em all!

    Liked by 1 person

  3. stella says:

    As yet, neither Musk nor Twitter has commented. But key Wall Street observers have weighed in with ideas.

    “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; more aggressive ownership role of Twitter,” Wedbush analyst Dan Ives said on Twitter.

    Noteworthy is that the SEC filing indicates that the transaction was carried out on March 14, meaning Musk had already acquired his stake before his March 25 poll on Twitter’s role in free speech.

    In addition, Musk, who made this equity investment in his name, uses a particular form. Indeed, the form differs from the one used by activist investors like Carl Icahn. It suggests that Musk is not seeking control of the company or to influence who controls it.

    But still and all, it’s hard to think Musk is going to be inactive. Many commentators expect the billionaire to push for big changes at Twitter. Besides Tesla and SpaceX, the tech-savvy Musk has had a hand in success stories like PayPal (PYPL) – Get PayPal Holdings, Inc. Report, which he co-founded.

    https://www.thestreet.com/investing/elon-musk-makes-a-bold-move-that-may-change-twitter-forever

    Liked by 4 people

  4. stella says:

    Liked by 2 people

  5. jeans2nd says:

    Dave Rubin has an interesting thought. If only.

    Liked by 3 people

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