Twitter’s getting ‘Musky’
Elon Musk. the mere mention of his name evokes a lot of emotions on Twitter. now it turns out he is the largest shareholder of Twitter. Musk said in a regulatory filing on April 4 that he holds a 9.2% stake in the social media company.
going a step further, Musk has been appointed to the Twitter board. Twitter CEO Parag Agarwal said, “He (Musk) is both a passionate believer and intense critic of the service which is exactly what is needed at the company”.
Twitter shares raced 27% following the announcement. twitteratis were definitely confused by the move, considering that Musk has been among the most vocal critics of the social media platform.
just a week ago, Musk had indicated that he wanted to set up his social media website and questioned Twitter’s free speech policy. given his influence, Musk could now use his shareholding to enforce changes on the platform.
analysts had predicted that Twitter could be an acquisition target because of the gradual slump in its share value since last year. from $72 levels in April 2021, the Twitter stock is hovering around $50 levels at present. the stock price, if you remember, had slid further after Jack Dorsey stepped down as the CEO in November.
Musk now holds over four times the stake of Twitter co-founder Dorsey in the company.
while any shareholding below 10% is considered ‘passive’ among Wall Street pundits, the acquisition and board membership could be a sign of Musk looking to dictate strategic decisions on Twitter.
he has also sought liberalised policies within Twitter that don’t hamper free speech. Musk is already in a war-of-words with the US securities regulator over past tweets.
taking a cue from his investment disclosure, equity investors pumped in money into Twitter, leading to a sharp increase in the share price. Musk’s stake is worth around $3 billion.
is the 9.2% stake an early indicator of a buyout in the near future? investors are eagerly waiting for an answer to this question.