‘World’s richest man’ Musk buys large stake in Twitter, sending stock soaring

Published April 5, 2022
Screens display the trading information for Twitter on the floor of the New York Stock Exchange on Monday.—Reuters
Screens display the trading information for Twitter on the floor of the New York Stock Exchange on Monday.—Reuters

NEW YORK: Tesla CEO Elon Musk, who has expressed concern over protecting freedom of speech in the “de facto public town square” of Twitter, disclosed on Monday a large stake in the social media company, sending shares soaring.

Musk, who has more than 80 million followers on the microblogging platform, became its largest shareholder following the purchase of 73.5 million shares or 9.2 percent of common stock, according to a securities filing.

The investment is worth about $2.9 billion based on Friday’s share price.

Musk is currently the world’s richest man, with a net worth of $287.6 billion, according to Forbes.

The billionaire is a frequent Twitter user, regularly mixing in inflammatory and controversial statements about issues or other public figures with remarks that are whimsical or business-focused.

He has also sparred repeatedly with federal securities regulators, who cracked down on his social media use after a purported effort to take Tesla private in 2018 fell apart.

Twitter shares rocketed higher on the announcement, surging more than 20 percent to $47.86 in mid-morning trading.

“We would expect this passive stake as just the start of broader conversations with the Twitter board (and) management that could ultimately lead to an active stake and a (potentially) more aggressive ownership role of Twitter,” analysts Daniel Ives and John Katsingris of Wedbush wrote in a note.

Disclosure of Musk’s stake follows a recent poll launched by the billionaire to his followers.

Saying “free speech is essential to a functioning democracy,” Musk on March 25 launched a survey on Twitter that asked: “Do you believe Twitter rigorously adheres to this principle?”

More than two million people voted in the poll, with over 70 percent saying “no.”

“Given that Twitter serves as the de facto public town square, failing to adhere to free speech principles fundamentally undermines democracy. What should be done?” he continued the next day. “Is a new platform needed?”

“Just buy twitter,” was one of the first responses from tens of thousands of users.

US political conservatives have long complained that the platform censors right-wing voices, an assertion the company denies.

Its critics in particular cite Twitter’s decision to ban Donald Trump over the former US president’s role in fomenting the January 6, 2021 attack on the US Capitol.

Twitter has also at times punished Representative Marjorie Taylor Greene, a far right Georgia congresswoman who has repeatedly posted misinformation about Covid-19 and vaccines against it.

Greene welcomed Musk’s investment on Twitter, tweeting “freedom of speech restored will enable us all to defeat them.”

Published in Dawn, April 5th, 2022

Opinion

Editorial

Smog hazard
Updated 05 Nov, 2024

Smog hazard

The catastrophe unfolding in Lahore is a product of authorities’ repeated failure to recognise environmental impact of rapid urbanisation.
Monetary policy
05 Nov, 2024

Monetary policy

IN an aggressive move, the State Bank on Monday reduced its key policy rate by a hefty 250bps to 15pc. This is the...
Cultural power
05 Nov, 2024

Cultural power

AS vital modes of communication, art and culture have the power to overcome social and international barriers....
Disregarding CCI
Updated 04 Nov, 2024

Disregarding CCI

The failure to regularly convene CCI meetings means that the process of democratic decision-making is falling apart.
Defeating TB
04 Nov, 2024

Defeating TB

CONSIDERING the fact that Pakistan has the fifth highest burden of tuberculosis in the world as per the World Health...
Ceasefire charade
Updated 04 Nov, 2024

Ceasefire charade

The US talks of peace, while simultaneously arming and funding their Israeli allies, are doomed to fail, and are little more than a charade.