Tech

Shares of Twitter rose more than 30% after Elon Musk received a 9% stake in the social media company

Outspoken CEO Elon Musk has acquired a giant stake in Twitter, making him the largest external shareholder in social media shares, shortly after criticizing the company for saying it failed. uphold the principles of freedom of speech.

Musk owns 73,486,938 shares of Twitter, which is a 9.2% passive stake in the company, according to the Securities and Exchange Commission 13G, released on Monday. The stake is worth $ 2.89 billion, according to the closing price of Twitter on Friday.

The purchase came less than two weeks after Musk criticized the company by asking people on Twitter whether it adhered to the principles of free speech. “Given that Twitter is a de facto public city square, non-compliance with the principles of freedom of speech fundamentally undermines democracy,” Musk tweeted. – What to do?

Late last month, Musk also said he was considering creating a new social networking platform.

Although it is classified as a passive share, investors have offered higher rates so that it could lead to something bigger. In the afternoon, Twitter shares rose more than 30%.

“Musk may try to take a more aggressive stance here on Twitter,” Wedbush analyst Dan Ives said on CNBC’s Squawk Box on Monday. “It could end up leading to some kind of ransom.”

“It makes sense given what Musk was talking about, at least in terms of social media,” Ives said.

Musk is a frequent Twitter user and has over 80 million subscribers on the platform. However, some of his tweets over the years have dragged Tesla’s head into hot water.

On August 7, 2018, Musk tweeted that he had “secured funding” to make Tesla private at $ 420 per share. 12 months after that tweet were roller coasters for shareholders Mask and Tesla. At the time, the company set performance records but also had to deal with litigation, government requests and layoffs. Musk also reached an agreement with the SEC that stripped him of his position as chairman of Tesla.

– Jessica Burshtynsky from CNBC contributed to this report.

Shares of Twitter rose more than 30% after Elon Musk received a 9% stake in the social media company

Source link Shares of Twitter rose more than 30% after Elon Musk received a 9% stake in the social media company

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