Elon Musk saw a reason to invest in Twitter (and it’s brutal)

ELON MUSK – Twitter in orbit. The action of the social network took off this Monday, April 4, after the capo of the manufacturer of tesla electric vehicles and the spaceflight company SpaceX, Elon Muskmade public a significant capital investment in the social network.

As of 12:15 GMT (2:00 p.m. in Paris), shares of the microblogging site soared nearly 20% to $47.21 in pre-open electronic trading on Wall Street.

According to a filing with the SEC, the US stock market regulator, Elon Musk, who is the richest man on the planet, acquired almost 73.5 million common shares of Twitter, or 9.2% of the stock market value of the company.

An investment of 2,900 million dollars

This makes it the largest shareholder in the group ahead of the investment fund Vanguard (8.8%) and the Morgan Stanley bank (8.4%), according to data from Bloomberg.

Based on Friday’s closing price of Twitter shares, the South African-born billionaire’s investment is nearly $2.9 billion. Contacted by AFP, Twitter did not immediately react.

In the document sent to the SEC (titled “Schedule 13G”), Elon Musk specifies that his participation, less than 10% of the common shares, is passive, that is, it does not count to influence the company’s major strategic decisions. .

But this entry into the capital could be the prelude to a more active role within the company, some experts believe. “We hope this passive involvement marks the beginning of deeper discussions with Twitter’s management and board, which may lead to active involvement and potentially more aggressive ownership,” Westbush Securities’ Dan Ives said in a note.

Elon Musk, nest of controversy on Twitter

Elon Musk speaks very frequently on the platform, where he has just over 80 million subscribers. His advertisements on the tweet network frequently arouse controversy. In the summer of 2018, in particular, he posted a tweet in which he claimed to have adequate funding to delist Tesla from the New York Stock Exchange, without providing evidence.

After an unfortunate new publication in early 2019, he had agreed that his messages directly related to the activity of the electric vehicle manufacturer would be pre-approved by the SEC. The leader had also left his position as chairman of the board of directors of tesla

However, in early March, Elon Musk asked a New York judge to cancel his settlement with the stock cop over his tweets, claiming through his attorney that the SEC was seeking to “harass Tesla and silence Mr. Musk.” ”.

The billionaire boss is also critical of the measures implemented by Twitter to moderate certain content considered inappropriate. At the end of March, Elon Musk posted two polls on the social network, one to ask his followers if they thought the Twitter algorithm should be open source, the other to find out if they felt the company respected freedom of expression.

Voters overwhelmingly answered “yes” to the first poll and “no” to the second. “Since Twitter acts as a de facto public square, its failure to adhere to the principles of free expression fundamentally undermines democracy,” the Tesla boss wrote on the social network after the results. “Is a new platform necessary?” he asked.

See also in The HuffPost: Rides and rave party: Elon Musk’s Tesla factory in Berlin opened with great fanfare

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