Iran Press/ America:The billionaire entrepreneur, who runs both SpaceX and Tesla, has purchased a 9.2% stake in Twitter, regulatory documents released on Monday (April 4) reveal. His stake in the company is worth nearly $2.9 billion based on Friday's (April 1) stock prices, Bloomberg reported.
That makes Musk the social media platform's largest single shareholder, according to Bloomberg, which also noted that Twitter's stock price increased as much as 27% on Monday in response to the news.
Musk, the world’s richest man and CEO of electric vehicle company Tesla, is a frequent Twitter user who often posts controversial messages and announcements and has long been critical of social media companies.
In one recent post, he questioned Twitter’s adherence to free speech and hinted at launching his own platform.
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According to a document filed with the US Securities and Exchange Commission (SEC), the South African-born billionaire acquired nearly 73.5 million Twitter shares — a 9.2 per cent stake in the company.
Investors responded quickly. At 7.15 am in New York (1115 GMT) Twitter’s stock was trading at about $49, up by around 26 per cent.
“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 and a potential more aggressive ownership role of Twitter,” analysts Daniel Ives and John Katsingris of Wedbush wrote in a note.
Musk launched a poll on Twitter on March 25, saying “free speech is essential to a functioning democracy. Do you believe Twitter rigorously adheres to this principle?”
More than two million people voted in the poll, with over 70 per cent saying “no.”
“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 continued the next day.
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