Throughout the past two years, no one has been a louder critic of Twitter than one of its biggest users: Elon Musk. However, all of that has changed, as Elon has purchased nearly ten percent of Twitter!
News of Musk’s move sparked some hope among conservatives who have been critical of Twitter’s enforcement of its rules and its ban on former President Donald Trump.
Musk, who the Bloomberg Billionaire Index lists as the world’s richest person with a net worth of about $273 billion, has in recent months said on Twitter — where he comments regularly — that he had given “serious thought” to building a competitor to the company. He said in a post last month that given that the social media platform “serves as the de facto public town square, failing to adhere to free speech principles fundamentally undermines democracy.”
Musk’s stake in Twitter is considered a passive investment, which means he is a long-term investor who’s looking to minimize his buying and selling of shares. But the sizable stake, along with Musk’s recent comments, indicate that he could be looking to exert some control of the company.
“We would expect this passive stake as just the start of broader conversations with the Twitter board/management that could ultimately lead to an active stake and a potential more aggressive ownership role of Twitter,” Dan Ives of WedBush Securities wrote in a client note early Monday.
In the immediate aftermath, Twitter stocks have already rose 25 percent since the announcement.