Overnight, shares in social media giant Twitter flew over 27% after the world’s richest man Elon Musk purchased a 9.2% stake in the company.
The CEO of Tesla has caused a rocketing in another US company overnight. Twitter Inc. shares rose after Elon took a US$3.68 billion stake in the company. Just because of this investment from the tech giant, Twitter shares rose a further 27% by closing on the New York Stock Exchange.
After filing his share disclaimer, Elon acquired 73.5 million shares in the company worth 9.2% of the company, which instantly made him the largest shareholder of Twitter; for reference, this is four times more than the shareholding of the company’s CEO, Jack Dorsey.
This move was seemingly made since the tech billionaire took a massive interest in the free speech mechanics of various social media giants. He firmly believes in the possibility of introducing a new platform to combat the flaws found in these companies and to the possibility of starting his own platform.
Not surprisingly, many people have considered the possibility of Elon Musk conducting a buyout of Twitter itself. The billionaire’s net worth far exceeds that of the entire market capitalisation of Twitter so this is definitely a move that he could proceed with.
In spite of the major move upwards, the overall share price of Twitter remains 22% lower than it was 12 months ago.