Micro blogging site Twitter’s shares soared more than 28 per cent after Tesla chief Elon Musk took 9 per cent stake in it.
Twitter shares were last up 28.49 per cent in at $50.51 in pre-market trading following the news. Based on Friday’s market close, the stake is worth about $2.89 billion.
Mr Musk has taken a 9.2 per cent stake in Twitter Inc, a regulatory filing showed on Monday, sending the micro-blogging site’s shares soaring in premarket trading.
Mr Musk now owns 73,486,938 shares of Twitter, which represents a 9.2 per cent passive stake in the company, according to the Securities and Exchange Commission 13G filing released on Monday.
The development has come within two weeks of Mr Musk criticising the company and seeking people’s views on whether the micro-blogging site adheres to free speech principles.
— Bloomberg (@business) April 4, 2022
Late March, the silicon valley billionaire said he was giving “serious thought” to building a new social media platform.
Mr Musk was responding to a Twitter user’s question on whether he would consider building a social media platform consisting of an open source algorithm and one that would prioritize free speech and where propaganda was minimal.
The Tesla chief, a prolific user of Twitter himself, has been critical of the social media platform and its policies of late. He has said the company is undermining democracy by failing to adhere to free speech principles.