South African business magnate, Elon Musk, recently purchased 9.2% of Twitter shares.
This means that, officially, Elon Musk is now Twitter’s largest shareholder, catapulting the company’s stock market value by more than 26%. The purchase was announced not long after he tweeted that he would launch his own platform because Twitter doesn’t adhere, in his opinion, to the principles of free speech. Musk did not disclose what he paid for the shares, but his stake was worth $2.9 billion at the close of trading on Friday, and $3.6 billion after Monday’s hike. Any time an investor buys 5% or more of a company’s stock, they must disclose the purchase on file with the Securities and Exchange Commission. Although less than a 10% stake in a company is considered “passive” in the eyes of Wall Street, it could indicate that Musk is trying to take a more active role in running Twitter, now that he has more than quadruple the shares of Twitter’s founder Jack Dorsey, who owns 2.25 %. Musk, founder of the electric car company Tesla and the aerospace company SpaceX, is a frequent user of Twitter, with an account of 80 million followers. He often posts controversial messages and critics to social media companies.