Elon Musk has just bought a 9.2% stake in Twitter. Making the richest person in the world the biggest shareholder in the social media icon of the blue bird.
Referring to the Securities Exchange Commission (SEC) report, Elon Musk bought 73.49 million shares of Twitter for USD 2.89 billion.
Twitter's current shareholders include The Van Guard Group Inc (8.39%), BlackRock Fund Advisor (4.56%), SSgA Funds Management Inc (4.54%), Aristotle Capital Management LLC (2.51%), ARK Investment Management LLC (2.15%), Fidelity Management & Research (2.14%), and Clear Bridge Investment LLC (2.09%).
After Elon Musk's action was revealed, Twitter shares immediately shot up 28%. The jump marked the stock's biggest intraday gain since the first day of trading following an initial public offering in 2013.
Musk himself is known to be active on Twitter. He joined in 2009 and now has more than 80 million followers.
Even so, the purchase of these shares was somewhat surprising. Because two weeks ago he criticized Twitter through a poll on his account.
He asked whether Twitter adheres to the principles of free speech. After more than 70% said no, he asked again if a new platform was needed.
"Given Elon's previous comments about wanting to start a social media company, I believe it's likely he will increase his stake in Twitter or take over the company stock in the near future," said Tom Forte, an analyst at DA Davidson & Co.
But Elon Musk's share buy will be a major test for new Twitter CEO Parag Agrawal, who replaced Jack Dorsey after he unexpectedly stepped down in November. When the change was announced Musk posted a meme depicting Agrawal as Soviet dictator Joseph Stalin and Dorsey as head of the Soviet secret police Nikolai Yezhov being pushed into the water.
"It looks like Elon has his laser eye on Twitter," said Wedbush analyst Dan Ives.
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