Twitter, along with other social media platforms, has come under fire since the pandemic for its loose adherence to freedom of speech. Elon Musk, who has voiced concerns about the issue, spoke with his money this week by becoming the largest outside shareholder in the company.
Tesla CEO Elon Musk is now the largest outside shareholder in Twitter after buying a large stake in the social media company, CNBC reported Monday
Musk’s purchase of more than 73,000 shares represents a 9.2 percent passive stake in the company, which had a market cap of over $37 billion Monday morning.
Shares of Twitter were up more than 20 percent Monday following the Securities and Exchange Commission disclosure. Musk’s purchase follows his criticism of the platform and its adherence to “free speech principles,” along with floating the idea of starting his own social media platform.
Musks’s stake in Twitter is passive, meaning he won’t be involved in the day-to-day operations of the business. But it also makes him the largest outside shareholder of the company. His ownership of the company surpasses that of Jack Dorsey, Twitter’s co-founder who stepped down as CEO last year, according to The New York Times.
At the time of Twitter’s IPO in 2013, venture firms like Benchmark, Spark Capital and Union Square Ventures were among the largest shareholders in the company. As of the end of last year, Vanguard was among the largest shareholders with an 8.8 percent stake in the company.
In private companies, Musk, currently the CEO of both SpaceX and Tesla, has invested in the likes of startups including Stripe and Quarterly Global.
Illustration: Tesla Owners Club Belgium Creative Commons photo
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