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Twitter stocks take off as Elon Musk buys a 9% stake worth nearly $3 billion | business news

Shares in social media giant Twitter are up a quarter after it was announced that Tesla billionaire Elon Musk had acquired a 9.2% stake.

A regulatory filing showed the tycoon had acquired 73,486,938 Twitter shares.

The stake is worth $2.89 billion (£2.2 billion) based on Twitter’s closing price on Friday.

Musk is a frequent user of Twitter and has more than 80 million followers, but he has recently criticized the approach to free speech, saying he is “seriously considering” building a new social media platform.

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Elon Musk has yet to explain his reasons for building a stake in Twitter, but it’s said to be a passive investment

His stake is considered a passive investment, signaling that he has no claims to a larger portion of the company.

But Wedbush analyst Dan Ives wrote in a note to investors, “We would expect this passive participation to be just the beginning of broader discussions with Twitter’s board/management, ultimately leading to active participation and potentially more aggressive ownership by Twitter.” could lead. “

Musk’s own use of Twitter has gotten him into trouble in the past.

He’s locked up litigation to free himself from the constraints of a deal he struck with US regulators in 2018. The deal forces him to have his tweets about Tesla pre-approved by a lawyer to avoid breaking rules about disclosing market-sensitive information.

musk signed an agreement with the US Securities and Exchange Commission after tweeting that he had secured funding to take the company private for $420 (£325) a share.

But the billionaire is now arguing that he was forced to sign the agreement, officially known as the Consent Decree, due to “relentless regulatory pressure from the SEC,” according to a court filing.

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Musk expressed interest in building his own social media platform last month

His lawyers accuse the panel of wanting to restrict Musk’s right to freedom of expression.

He did not want to comment on the reasons for taking over the Twitter stake.

The platform’s share price rose a little over 20% in early Monday trading in the United States.

Twitter stocks take off as Elon Musk buys a 9% stake worth nearly $3 billion | business news

Source link Twitter stocks take off as Elon Musk buys a 9% stake worth nearly $3 billion | business news

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