According to a filing with the U.S. Securities and Exchange Commission on Monday, Elon Musk, Tesla’s chief executive officer has acquired a 9.2% dormant stake in social media giant Twitter Inc. Shares of Twitter rose as much as 26 percent in premarket trading. The stock is valued at $ 2.8 billion, according to estimates from Twitter’s closing date.
The announcement came days after Musk conducted a Twitter poll asking if Twitter’s strict adherence to the freedom of expression necessary for a functioning democracy.He had asked his 80 million followers to vote carefully as the consequences of the vote would be decisive.
Over 70% of users said ‘no’, the poll showed. Following the result, he posted a tweet asking if there was an alternative to Twitter.He also said that he is seriously thinking about his own social media platform.
“Twitter acts like a real public city square, failing to adhere to the principles of freedom of expression fundamentally undermines democracy. What to do?” Musk tweeted last month. “Need a new platform?” He asked in the following tweet. Musk is a die-hard Twitter user, but recently he was critical of the social media giant.
According to Bloomberg, he owns 73.48 million shares in the company. It is more than four times the number of shares held by Twitter founder Jack Dorsey. Elon Musk will hold a stake in the company through the Elon Musk Recoverable Trust.
“Musk can try to take a more aggressive stance on Twitter,” Wadebush analyst Dan Ives told CNBC’s SquadBox.”It may eventually lead to some kind of purchase.” “It makes sense, even from a social media perspective, considering what Musk said,” Ives added.
In early January, Musk disagreed with Twitter’s new feature that allows premium users to display their non-fungal token (NFT) purchases as their profile picture.The social media giant Twitter is not spending its resources well and Musk said in a tweet that “this is disgusting”.
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