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. An analyst says this could eventually lead to a buyout.
Elon Musk’s Stake in Twitter
Tesla and Spacex CEO Elon Musk disclosed that he has taken a 9.2% stake in Twitter Inc. in a filing with the U.S. Securities and Exchange Commission (SEC) Monday.
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, a frequent user of Twitter, also set up a poll on the platform asking his 80 million followers whether they believed Twitter rigorously adheres to the free speech principle. 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. By comparison, Twitter founder Jack Dorsey, who stepped down as the CEO of the company last year, holds a 2.25% stake.
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.
