Did Elon Musk Buy Twitter? Everything We Know About His New Twitter Shares
Tesla and SpaceX CEO Elon Musk has purchased a massive stake in social media giant Twitter, making him the largest outside stockholder in the company. The development comes a week after Musk said he was «giving serious thought» to launching a new social media network to rival the likes of Twitter and Facebook.
Twitter is one of the largest social media networks in the world, with more than 200 million daily active users and revenues of $5.1 billion as of Dec. 2021. The company was co-founded by Jack Dorsey, who also served as its CEO from 2015 to 2021. However, Dorsey stepped down as the company's CEO in No. 2021, and Parag Agarwal took the position over.
Related: Elon Musk Forced To Raise Prices For SpaceX Starlink Due To Inflation
In a filing with the United States Securities and Exchange Commission (SEC) released Monday, Musk revealed that he had bought 73,486,938 shares of Twitter, which accounts for a 9.2 percent stake in the company. According to CNBC, the stock is worth $2.89 based on Friday's closing price, although the company's stock price surged in early trading on Monday on the back of this news. Meanwhile, the report further suggests that even though Musk's shares are classified as a passive stake, the purchase could lead to a buyout, although there's no clarity on that front at this time. According to Wedbush analyst Dan Ives, the passive stake could eventually lead to an active stake in the company, allowing Musk to wield «a more aggressive ownership role (in) Twitter.»
While Musk now owns nearly 10 percent of Twitter, the company's former CEO and most high-profile co-founder, Jack Dorsey, reportedly owns only around two percent, according to Bloomberg. In addition, Musk is the sole trustee of the Elon
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