Elon Musk buys 9.2% stake in Twitter, making him the largest shareholder

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Tesla and SpaceX founder Elon Musk has acquired a 9.2% stake in Twitter, according to a regulatory filing Monday, making him the company’s largest shareholder.

While the purchase price has not been disclosed, Musk’s 73.5 million shares were valued at approximately USD$2.89 billion at the close of trading Friday.

As news of the purchase began to spread, Twitter’s share price surged 25% before the opening bell Monday, and it continued to grow in after-hours trading.

 

 

Musk’s arrival as Twitter’s largest shareholder comes weeks after he raised questions about whether the social media platform adheres to free speech ideals.

“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?” Musk tweeted to his 80 million followers last month.

Musk also said he was “giving serious thought” to creating a new social media platform where “freedom of speech” principles would be adhered to.

 

 

Twitter also said in a regulatory filing on Tuesday that it’s appointing Musk to its board for a term expiring at its 2024 annual shareholders meeting.

As part of the deal, Musk has agreed not to acquire more than 14.9% of the company’s shares while he is a member of the board and for 90 days after.

[Elon’s] both a passionate believer and intense critic of the service which is exactly what we need on @Twitter, and in the boardroom, to make us stronger in the long-term.

Twitter CEO, Parag Agrawal, said in a tweet that the company had been talking to Musk in recent weeks and “it became clear to us that he would bring great value to our Board.”

“He’s both a passionate believer and intense critic of the service which is exactly what we need on @Twitter, and in the boardroom, to make us stronger in the long-term. Welcome Elon!” Agrawal added.

“Looking forward to working with Parag & Twitter board to make significant improvements to Twitter in coming months!” Musk wrote, responding to Agrawal’s tweet.

 

 

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