Elon Musk acquires 9.2% stake in Twitter2022-04-04 18:59 by Daniela
Elon Musk is buying a 9.2% stake in Twitter worth $2.9 billion. The Tesla CEO purchased 73.5 million shares, according to a regulatory filing Monday.
The purchase follows recent criticism by Musk over the social media site's free speech policies. "Given that Twitter serves as the de facto public town square, failing to adhere to free speech principles fundamentally undermines democracy," he tweeted last week.
Musk is a prolific Twitter user and has over 80 million followers, but the platform has also brought him trouble. Most famously, in 2018 he tweeted that he had "funding secured" to take Tesla private at $420 a share, setting off an SEC lawsuit that cost him $20 million and his spot as chairman of the board. Musk recently challenged the settlement, saying that the SEC overstepped its authority. He's asking a federal judge to terminate his agreement requiring some tweets to be vetted by a lawyer.
Analysts believe the shareholding taken by Musk could eventually result in the 50-year-old taking an active interest in the microblogging site that could lead to a buyout.
"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," said Dan Ives, an analyst at Wedbush Securities.
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