Tesla CEO and iconoclast billionaire Elon Musk has bought a 9.2% stake in Twitter, making him the social media giant's largest shareholder.
Musk is the world's richest man, with an estimated net worth of $267.3 billion. News of his decision sent Twitter shares soaring 26% in pre-market trading.
Musk's March 14th purchase, announced earlier today, came after criticizing Twitter's perceived lack of free speech.
CNBC reports:
Musk owns 73,486,938 shares of Twitter, which represents a 9.2% passive stake in the company, according to a Securities and Exchange Commission 13G filing released Monday. The stake is worth $2.89 billion, based Twitter's closing price Friday.
The purchase comes less than two weeks after Musk criticized the company, polling people on Twitter about whether it adheres to free speech principles. “Given that Twitter serves as the de facto public town square, failing to adhere to free speech principles fundamentally undermines democracy,” Musk tweeted. “What should be done?”
Late last month, Musk also said he was considering building a new social media platform.
Although Musk's stake in Twitter is classified as passive, many investors believe the development could have a significant impact on the company.
“Musk could try to take a more aggressive stance here on Twitter,” Wedbush analyst Dan Ives said Monday on CNBC's “Squawk Box.” “This eventually could lead to some sort of buyout.”
Twitter absolutely does not allow free speech on its platform. They unfairly
censor any post that represents an opinion or fact that doesn’t fit with their
political narrative. I hope Mr. Musk uses his position to influence a more balanced and democratic approach to social media.