Twitter stock soared in premarket trading on Monday, following the Tesla CEO Elon Musk announced a stake of more than 9 percent in the social media giant, making it one of its largest shareholders.
As of 7:25 a.m. ET, Twitter shares are up more than 24 percent to $48.81.
In a filing with the Securities and Exchange Commission Monday, Musk detailed that he owns nearly 73.5 million Twitter shares, announcing that that equated to about 9.2 percent of the stake. CNBC noted that this made him the company’s largest outside shareholder. His stake was worth around $2.89 billion based on the company’s closing price on Friday.
The outspoken entrepreneur didn’t immediately give a reason for his investment.
However, Musk has often used Twitter in the past, where he has more than 80 million followers, to comment on various topics, including stocks and even Twitter itself. More recently, he has released polls asking respondents about engagement questioned by Twitter for free speech, and even suggested he was considering starting his own competing social media company.
“Given that Twitter serves as a de facto public marketplace, failure to uphold the principles of free speech fundamentally undermines democracy,” Musk wrote in a recent post, before asking, “What should be done?” when someone suggested a competitor the businessman said he was “seriously considering” the idea.
former President Donald Trump was thrown off the social media platforms after the riots in the Capitol on January 6, 2021 and has launched its own network platform called Truth Social, which positions itself as a conservative-friendly alternative to Twitter & Co. But there was a waiting list and technical glitches to his challenges.
Twitter is now run by the CEO Parag Agrawal who received a compensation package worth more than $30.3 million in 2021 fueled by his promotion to the top job, the social media company disclosed in a regulatory filing last week. Agrawal successful co-founder Jack Dorsey At the end of last year. Dorsey has remained on Twitter’s board of directors but will leave when his tenure ends this year. In 2021, he was paid $1.40, a reference to Twitter’s well-known original limit of 140 characters per post.
This article was originally published by The Hollywood Reporter.
https://www.billboard.com/business/tech/elon-musk-twitter-stake-stock-soars-1235054857/ Elon Musk Acquires 9.2% Stake in Twitter, Sending Stocks Soaring – Billboard