Elon Musk has purchased a nine per cent stake in Twitter, making him the social media platform’s largest shareholder.
Musk’s purchase of 73,486,938 shares on March 14 were revealed in Twitter filings yesterday, which quickly sent the social media site’s stocks surging nearly 30 per cent.
In fact, since Musk’s humble purchase on March 14, Twitter shares have jumped by nearly 50 per cent.
While the Tesla CEO did not disclose the exact amount paid for the shares, or why he made the purchase at all, his stake was reportedly worth $US3.5 billion ($A4.6 billion) on Monday morning.
To put that into context, Twitter’s founder and former CEO, Jack Dorsey, was previously the platform’s largest individual shareholder with 2.25 per cent. However, following his sizeable purchase, Musk’s stake is now four-times larger than Dorsey’s.
Many have questioned Musk’s motives regarding the purchase, but if his recent Tweets are any suggestion, the world’s wealthiest man may have big plans for the platform.
Last month, Musk posted on his official Twitter page asking his 80 million followers if they believed Twitter “rigorously” adhered to the principles of free speech, to which an overwhelming majority answered “no”.
Free speech is essential to a functioning democracy.
Do you believe Twitter rigorously adheres to this principle?
— Elon Musk (@elonmusk) March 25, 2022
Given that Twitter serves as the de facto public town square, failing to adhere to free speech principles fundamentally undermines democracy.
What should be done? https://t.co/aPS9ycji37
— Elon Musk (@elonmusk) March 26, 2022
He then asked what should be done, considering “Twitter serves as the de facto public town square” and that “failing to adhere to free speech principles fundamentally undermines democracy”.
“Is a new platform needed?” He then asked his followers.
In a note to investors, CFRA analyst, Angelo Zino said given that Musk’s stake was a very small percentage of his overall wealth, and that Twitter shares had been dropping since last year, an all-out buyout by Musk “should not be ruled out”.
Twitter is yet to comment on the matter.
