Elon Musk becomes Twitter’s largest shareholder: buys 9% stake for $2.9 billion
Elon Musk is the most powerful person on Twitter. The CEO of Tesla and SpaceX has bought 9.2% of Twitter shares for a total of 2.89 billion dollars, as registered with the U.S. Securities and Exchange Commission.
In this way, Elon Musk becomes the largest shareholder of Twitter, ahead of Vanguard Group (8.79%) or Morgan Stanley (8.76%). Twitter shares have risen more than 25% in the premarket following the news.
In total, Musk has bought 73 million Twitter shares, representing approximately 10% of the company. At the moment, it is unknown what role Musk will have in the company as the acquisition does not relate to any specific function. He may initially act as just another outside investor.
This purchase comes weeks after Musk expressed on his personal account that he wanted to “create his own Twitter” in the face of the lack of free speech. We do not know if he will keep his plans to create his own network, but it seems that he has decided to bet on Twitter in a much more active way, as opposed to what he said before.
Twitter is going through a time of change. Just four months ago, Jack Dorsey, its founder, stepped down as CEO to give the responsibility to Parag Agrawal, its former CTO. One of the projects that the new CEO has in hand is to decentralize Twitter, precisely to combat censorship and the impact of the algorithm. Just one of Elon Musk’s main complaints about this social network, where he is an active user and has more than 80 million followers.