Tesla CEO Elon Musk has taken a stake in Twitter Inc. after stating that he is “giving serious thought” to building a new social media platform — one that prioritizes free speech. This could lead to a purchase, according to an analyst.
Elon Musk’s Stake in Twitter
Elon Musk (Spacex CEO) disclosed in Monday’s filing to the U.S Securities and Exchange Commission that he took a 9.2% share in Twitter Inc.
The Elon Musk Revocable Trust, for which the Tesla boss is the sole trustee, now holds 73,486,938 shares of Twitter, the SEC filing details, adding that this amount represents 9.2% of Twitter’s common stock, based on 800,641,166 shares outstanding as of Feb. 10. The stake is worth $2.89 billion, based on Twitter’s closing price on Friday.
Musk’s investment in the social media giant came a little over a week after he said he is “giving serious thought” to creating a new social media platform that would focus on free speech as a top priority.
Musk is a regular Twitter user. He also created a poll asking 80 million of his followers if they believe Twitter adheres strictly to free speech principles. The Tesla boss hinted that the consequences of the poll “will be important.” Over two million votes were counted and 70.4% said no.
With the 9.2% stake, Musk has become Twitter’s biggest shareholder. Comparatively, Twitter founder Jack Dorsey holds a 2.25 percent stake. He resigned as CEO last year.
While Musk’s investment in Twitter is considered a passive stake, investors are hopeful that this could lead to something more, and Twitter’s shares surged more than 25% in the pre-market.
CNBC spoke Monday with Dan Ives from Wedbush, an analyst at the company.
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,” Ives added. The analyst also wrote in a note: “We would expect this passive stake as just the start of broader conversations with the Twitter board and management that could ultimately lead to an active stake and a potential more aggressive ownership role of Twitter.”
Paul Hickey, Bespoke Investment Group’s co-founder, shared with CNBC: “Twitter is a $30 billion company. Elon Musk has a value of $300 billion. It’s not necessarily a big stake for him … I’m thinking about it from a Tesla shareholder’s perspective. As they are growing, do you really want him taking his eye off the ball?”
Are you a fan of Elon Musk purchasing a stake in Twitter Inc. Leave your thoughts in the comment section below.
Credits for the imageShutterstock. Pixabay. Wiki Commons
DisclaimerThis information is intended for general purposes. It does not constitute an offer, solicitation, or recommendation of any company, products or services. Bitcoin.com doesn’t offer investment, tax or legal advice. This article does not contain any information, products, or advice that can be used to cause or alleged result in any kind of damage.