Elon Musk takes 9.2% stake in Twitter after hinting at shake-up

Elon Musk, the CEO of Tesla, has amassed a 9.2 percent stake in Twitter, the social media company. Musk, a frequent tweeter, now owns over 73 million shares in Twitter, according to an SEC regulatory filing.

Following a regulatory statement Monday on Musk’s purchase of a stake in Twitter, the stock jumped roughly 26% in pre-market trading.

Musk, 50, polled his more than 80 million Twitter followers last month, asking if the company adhered to free speech ideals. After more than 70% of people replied no, he inquired if a new platform was needed and that he was seriously considering launching his own.

Musk is one of the most well-known Twitter users, and he has a history of getting himself into problems on the network. Tesla Inc. CEO Elon Musk is attempting to get out of a 2018 agreement with the Securities and Exchange Commission that limits his tweets about the electric vehicle company.

Musk’s Twitter ownership is classified as a passive investment, implying that he is a long-term investor who wants to keep his buying and selling to a minimum.

However, in recent weeks, Musk has raised concerns on Twitter about free speech and if failing to follow its basic principles damages democracy. He’s reportedly considered creating his own social media network, and industry watchers doubt that the erratic CEO would stay out of the spotlight for long.

The announcement will be another key test for new Twitter CEO Parag Agrawal, who took over from Jack Dorsey after his abrupt resignation in November.

Agrawal promised to improve product execution, boost accountability, and make speedier decisions. By the end of 2023, the company established aggressive growth goals, including growing annual revenue to $7.5 billion and reaching 315 million daily users.

Musk’s 9.2 percent holding puts him ahead of Vanguard Group (which owns 8.79 percent), Morgan Stanley Investment Management (which owns 8.08 percent), and BlackRock Institutional Trust Company (which owns 8.08 percent) (4.56 percent ).

Jack Dorsey, the co-founder of Twitter, owns about 2.25 percent of the company’s stock, or about a fourth of Musk’s.

But that’s only a small part of Musk’s fortune; according to Forbes’ Real-Time billionaire’s list, the world’s richest individual is worth $287 billion. As of Friday night’s close, Twitter was valued at around $32 billion.

According to Dan Ives, an analyst at Wedbush Securities, Elon Musk’s 9.2 percent investment in Twitter is “just the beginning.”

According to CNBC, Musk is expected to take an active interest in Twitter in the future in order to try to transform the firm, or it might eventually lead to a buyout.

Elon Musk’s first tweet after the purchase :-

Source – Inshorts

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