Elon Musk is one of the most recognized names globally, and he so happens to be one of Twitter’s most prominent users. Now, the man who owns Tesla and SpaceX has become the largest stakeholder in Twitter, buying just over 9% of the stock.
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News outlets aren’t speculating too much, but there are some reasons why Elon Musk made this large purchase of the social media company. Musk has been very vocal about free speech on social media and has mentioned that platforms such as Twitter should not be censoring users’ opinions. Some view Twitter and other social media platforms as a public square and feel that the company’s privately owned status should not supersede free speech.
According to the AP, Elon Musk now has a share purchase in Twitter worth US#2.9 billion, and his purchase sent the Twitter stock up this morning.
The ultimate aim of Musk’s 73.5 million share purchase worth $2.9 billion, based on the closing price Friday, is not clear. Yet in recent weeks Musk, who has 80 million Twitter followers and posts there often, has questioned free speech on Twitter and whether the platform is undermining democracy.
The regulatory filing Monday describes Musk as a long-term investor looking to minimize his buying and selling of the shares.
He has also pondered starting a rival social media network, and industry analysts are skeptical about whether the mercurial CEO would remain on the sidelines for long.
“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,” Dan Ives of Wedbush Securities said in a client note early Monday.
Twitter’s stock surged 20% before the opening bell Monday.
AP News
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