Twitter Shares Soar After Musk Takes 9 Per Cent Stake in Microblogging Site
- Elon Musk is now recognized as the highest shareholder in Twitter after taking a 9.2 per cent share
- Prior to the time, the maverick Tesla CEO had threatened to build a rival social media company to take on Twitter
- Musk boasts over 80 million followers on Twitter which analysts say might follow him to a new platform
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Days before he acquired a 9.2 per cent state in the social media company, Twitter, Tesla CEO, Elon Musk had threatened to build a new social media company to take on the likes of Facebook and his favourite, Twitter.
Musk had criticised the microblogging site for not adhering to the tenets of free speech. He questioned the company for priding itself as the de facto town square.
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Largest Twitter shareholder
He now owns 73,4486,938 shares of the company. Representing a 9.2 per cent share in the company, Securities and Exchange Commission 13G filing says, a report by CBN says.
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The worth of the stake is 2.89 billion, according to the company’s closing price on Friday, April 1, 2022.
Experts say that Musk’s threat to build a new social media platform would have jolted Twitter and other social media platforms into asking him to come to take a large chunk of shares in the company.
He has about 80 million followers on Twitter, which experts say might follow his new social media platform if he were to build one.
Soon after he bought the shares, Twitter’s shares surged with investors bidding shares higher on the possibility that it could lead to something more. The share of the social media company skyrocketed to more than 27 per cent.
Twitter Twitter did not comment.
Roller Coaster run at Tesla
As an outspoken Twitter user, his tweets have gotten him some flacks in the past.
In 2018, Must tweeted that he wanted to take Tesla, his car making company, private at $420 per share. Musk did not find it easy in the next 12 months.
While the share of Tesla soared, pressure mounted on him by SEC to resign as chairman of the company.
Elon Musk recoups his money spent in becoming Twitter largest shareholder, after making over N6.36trn in a day
Legit.ng has reported that Elon Musk's net worth has increased to $288 billion, widening the gap between him and Jeff Bezos, the world's second richest man.
Bloomberg reports that between 9:30 a.m. and 4 p.m. on Monday, April 4, he made over $15.3 billion thanks to a rise in the price of Tesla Inc shares and Twitter shares he had purchased on Friday last week.
Legit.ng had earlier reported how Musk committed $2.89 billion to buy a 9.2 percent stake of Twitter making him the largest shareholder.
Source: Legit.ng
