Twitter shares soar more than 25% after Elon Musk takes 9% stake in social media company

Elon Musk speaks during a press conference at SpaceX’s Starbase facility near Boca Chica Village in South Texas on February 10, 2022.

Jim Watson | AFP | beautiful pictures

Straight Tesla CEO Elon Musk bought a huge stake in Twitter that made him the social media stock’s largest outside shareholder, not long after criticizing the company for failing to uphold free speech principles.

Musk owns 73,486,938 Twitter shares, representing a 9.2% passive stake in the company, according to a Securities and Exchange Commission 13G filing released Monday. Shares are worth $2.89 billion, based on Twitter’s closing price on Friday.

Musk’s acquisition comes less than two weeks after Musk criticized the company, polling people on Twitter about whether Twitter adheres to free speech guidelines. “Given that Twitter serves as a de facto public town square, failure to adhere to free speech principles fundamentally undermines democracy,” Musk wrote on Twitter. “What to do?”

While it is classified as a passive share, investors have bid the share higher if this could lead to something more. Twitter shares are up more than 25% in money markets.

“Musk may try to take a more aggressive stance here on Twitter,” Wedbush analyst Dan Ives said Monday on CNBC.Box of Squaw. “” This can eventually lead to some sort of outright buyout. “

“This makes sense given what Musk was talking about, at least from a social media perspective,” Ives said.

Musk is a frequent user of Twitter and has more than 80 million followers on the platform. However, some of his tweets have plunged Tesla leadership into boiling water over the years.

On August 7, 2018, Musk tweeted that he had “finance secured” to take Tesla private at $420 per share. The 12 months after that tweet has been a roller coaster ride for Musk and Tesla shareholders. During that time, the company has set performance records, but has also faced lawsuits, government requests, and layoffs. Musk also reached an agreement with the SEC to remove him from the role of chairman of Tesla.

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