Updated with the closing price of the shares. Tesla founder Elon Musk bought 73.5 million shares of Twitter, or 9.2% of the company, increasing its shares by 27% that day, but his intentions raised concerns.
The SEC said in a statement this morning that the $ 2.9 billion purchase date is March 14. It is still unclear what led the billionaire to become Twitter’s largest shareholder. In December of last year, he posted a post about Memi’s recent business management transition through a parallel to the Stalin-era Soviet Union and raised questions about free speech on social media. Founder and two-time CEO Jack Dorsey resigned abruptly in November last year, passing to CEO Parag Agrawal.
“Elon has an eye laser installed on Twitter,” Wedbush Securities analyst Dan Ives wrote in a note to clients pointing to online photos of cryptocurrency lovers like Muskie. “We hope this passive gamble is just the beginning of broader discussions with Twitter’s board / management, which could lead Twitter to take potentially more aggressive measures and ownership roles.
Twitter shares closed at $ 49.97, the highest level since last November. The volume traded was 10 times higher than the average daily stock of shares.
Musk appears to be considering the issue of content moderation and restrictions that has plagued Twitter and other social media companies in recent years. He recently interviewed his 80 million Twitter subscribers and asked them if they thought the company supported free speech. More than 70% responded negatively, prompting Musk to consider launching their own platform.
Under Agrawal’s leadership, investors are closely monitoring whether the company will be able to meet its ambitious growth targets. According to Twitter, it will reach $ 7.5 billion in annual revenue and 315 million daily users by the end of 2023. Agrawal has also promised to improve product performance, increase accountability and make decisions faster.
Muskie, who also runs SpaceX, is worth $ 270 billion. Last year, he surpassed Amazon founder Jeffrey Bezos to become the richest man in the world.
Source: Deadline
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