To become the biggest shareholder of Twitter Inc., Elon Musk bought a 9.2% stake in the company. This was a week after Musk said he might change the social media industry.
Shares of Twitter rose as much as 27% after it was revealed that Tesla CEO Elon Musk had bought a stake in the company on Monday. It was the stock’s biggest intraday rise since its first day of trading after the company went public in 2013.
Based on Friday’s market close, the stake is worth about $2.89 billion, which is how much it is worth. Musk, 50, asked his more than 80 million Twitter followers last month if they thought the company was following the rules of free speech.
A lot of people didn’t say yes. After more than 70 percent said no, the man asked whether there should be a new platform and said that he was seriously thinking about starting his own company.
Free speech is essential to a functioning democracy.
Do you believe Twitter rigorously adheres to this principle?
— Elon Musk (@elonmusk) March 25, 2022
There have been a lot of comments from Elon about how much he wants to start a social media company. It’s possible that he will increase his stake in Twitter or even take a controlling stake in the company at some point in the near future.
One of the most well-known people on Twitter is Tesla CEO Elon Musk. He often gets into trouble on the site. He wants to get out of a deal he made with the U.S. Securities and Exchange Commission in 2018 that put rules in place to stop him from tweeting about Tesla.
In November, Twitter CEO Jack Dorsey unexpectedly resigned. Parag Agrawal, who took his place, will face another big test when the company makes the news.
Agrawal said he would be more accountable, make decisions faster, and improve the way products were made. The company set a lot of big goals for growth, like making $7.5 billion a year and having 315 million daily users by the end of 2023.
Musk made a mysterious meme in December after Twitter announced that Agrawal would be taking over as CEO of Twitter from Dorsey. When Dorsey was shoved into the water, it looked like Agrawal was Soviet dictator Joseph Stalin and Yezhov was a Soviet secret police head.
Twitter is especially vulnerable to outside pressure because unlike Google, Facebook, Amazon, and Snap, the company’s founders don’t have special voting power over how the company will grow and change.
The company has just come back from Elliot Management’s pressure, which started in 2020. Dorsey, who was in charge of Twitter for a second time, had to come up with a succession plan.
It’s not clear what Musk plans to do with his share. Date: March 14 is shown in an SEC filing. The event that led to a public announcement was March 14. The type of form used often shows that the investor isn’t trying to get control of a company, or change who controls it.
In the Bloomberg Billionaires Index, Tesla CEO Elon Musk is already the richest person in the world. Since mid-March, he’s made about $1.1 billion on his Twitter stock, based on the rise in the stock in early trading Monday.
To build new products more quickly, Twitter is under a lot of pressure from its users. The company set very high revenue and user growth goals to show investors that it was serious about growing its business.
With steady growth for a long time, Twitter hasn’t kept up with the rest of its industry. But its stock gains haven’t kept up.
Musk has slammed Twitter’s recent development of profile pictures linked to non-fungible tokens, saying that the social media company isn’t paying attention to what’s important to its users.