Entrepreneur and Billionaire business magnate; Elon Musk is now the largest shareholder in popular microblogging and social networking service; Twitter, after purchasing a 9.2 percent stake in the company.
According to a document filed with the United States (US) Securities and Exchange Commission (SEC) revealed that Elon Musk bought almost 73.5 million shares worth 3 Billion United States Dollars in Twitter.
This means that the Tesla co-founder who is also the richest man in the world with an estimated net worth of 273 Billion United States Dollars, now owns more than four (4) times the shares that Jack Dorsey who is the founder of Twitter, has in the social media company which stand at 2.25 percent.
Elon Musk’s passive stake in Twitter is currently valued at around 2.9 Billion United States Dollars based on the most recent valuation.
It is believed that the deal was completed for around 2.4 Billion United States Dollars based on its stock price on the 14th of March 2022 when the shares were purchased.
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The announcement of the purchase by Elon Musk resulted in Twitter’s share value increasing my over 26 percent in pre market trade before Wall Street began operations on Monday the 4th of April 2022 boosting the value of the Billionaire’s 9.2 percent stake to around 3.6 Billion United States Dollars. This signifies an interest of around 1.2 Billion United States Dollars for the tech mogul in the space of three (3) weeks.
The value of shares of other social media companies like Snap Inc which owns Snapchat and Meta which owns Facebook, Instagram, and WhatsApp also traded higher.
Elon Musk’s 9.2 percent stake in Twitter is being looked at as a passive investment because he is as it stands, a long-term investor who is looking to minimize his buying and selling of the company shares.
A client note by Dan Ives of WedBush Securities which was released on the 5th of April 2022 read, “We would expect this passive stake as just the start of broader conversations with the Twitter board/management that could ultimately lead to an active stake and a potential more aggressive ownership role of Twitter.”
Having a passive investment is one effective way to gradually building up wealth through the long term ownership of stocks as opposed to carrying out regular trading which usually comes with more fees while also being significantly more volatile.
Dan Ives stated that, “Musk could try to take a more aggressive stance here on Twitter. This eventually could lead to some sort of buyout. This makes sense given what Musk has at least been talking about, at least from a social media perspective.”
The shares in question, are being held by the Elon Musk Revocable Trust where he is the sole trustee.
On the day when the United States (US) Securities and Exchange Commission (SEC) document was filed, Elon Musk had challenged the President of Russia; Vladimir Putin to a fight on Twitter and also posted a meme on the platform talking about supporting recent trends.
The Billionaire has been asking questions about the ability express one’s thoughts freely on Twitter and posted a tweet in March 2022 about free speech and the social media platform.
His tweet read, “Free speech is essential to a functioning democracy. Do you believe Twitter rigorously adheres to this principle?”
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The tweet also came with a poll on the same day. The result of the poll was that 70 percent of the two million users that responded chose that Twitter does not adhere to free speech.
In the words of Elon Musk, “The consequences of this poll will be important. Please vote carefully.”
The Billionaire revealed through another tweet that he was “giving serious thought”, to building a new social media platform. This was in response to a Twitter user who posed a question about whether he would consider creating a social media platform made with an open source algorithm where propaganda is low and where free speech would be a priority.
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