(TSLA) and SpaceX, the two companies he leads, neither of which has the traditional public relations department in place at other companies. And he is a frequent tweeter, using it as the major form of disseminating news about both Tesla Musk has 80 million Twitter followers, far more than any other CEO. Twitter did not have an immediate response to a request for comment on Musk’s investment. Thus it makes more sense for him to try to change practices at Twitter itself. Ives said it’s probably not realistic for Musk or anyone else to try to start building a new, competing platform from scratch. “One way or another, he’s going to change the course of Twitter,” Ives said. “This is a shot across the bow at Twitter’s board and management team to start discussions.”Įven if Musk doesn’t try to change the way Twitter operates, his large purchase could prompt some other activist investors to take a stake in the company, Ives said. “I think he intends to go active and force change at Twitter,” said Dan Ives, tech analyst as Wedbush Securities. That is one of the factors prompting other investors to buy shares and drive up the price early Monday. Although a stake of less than 10% in a company is considered “passive” in the eyes of Wall Street, it could signal an effort by Musk to take a more active role in how Twitter is run. “What should be done?”Īny time an investor buys 5% or more of a company’s shares, they must disclose the purchase in filings with the Securities and Exchange Commission. “Given that Twitter serves as the de facto public town square, failing to adhere to free speech principles fundamentally undermines democracy,” Musk tweeted last month. Last month he said he was giving “ serious thought” to creating a new social media platform. But he has been a high-profile critic of Twitter policies in the past. Musk’s filing did not disclose the purpose of the purchase or any plans for the company. Musk did not disclose what he paid for the shares, but his stake was worth $2.9 billion as of the close of trading Friday, and $3.5 billion after the spike early Monday. News of the purchase sent shares of Twitter Elon Musk recently purchased 9.2% of Twitter stock, according to a filing Monday, making him the largest shareholder in the company.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |