Featured Image Credit: Alamy
Topics: Elon Musk, Technology, Twitter
Hannah Smith
Elon Musk has acquired a 9.2% stake in Twitter, according to new regulatory filings.
The filing, which was released by the Securities and Exchange Commission ahead of US markets opening today (4 March), describes Musk's new holding in the social media as 'passive,' suggesting he will not seek to exert any control over the company's policies.
In the wake of the announcement Twitter's share value soared by as much as 26 percent, with investors buoyed by the backing of the world's richest man.
According to CNN Business data the 9.2 percent stake makes Musk the single largest shareholder in Twitter, with a higher stake in the business than even the company's founder Jack Dorsey, who stepped down as CEO of the company last year.
The next biggest investor in the company is investment management firm The Vanguard Group, which owns an 8.39 percent stake. Neither Musk nor Twitter has commented on the new investment.
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Musk's shock investment comes just weeks after he criticised Twitter for 'failing to adhere to free speech principles,' and claimed that he was giving 'serious thought' to establishing his own social media platform.
"Given that Twitter serves as the de facto public town square, failing to adhere to free speech principles fundamentally undermines democracy. What should be done?" he tweeted on 26 March.
The new investment would appear to suggest that a new Musk-backed social media platform is now unlikely.
Musk has long been a prolific Tweeter, using the platform to share memes alongside updates about Tesla, SpaceX and his thoughts on the general state of things.
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His use of the platform has often got him into trouble, with Musk have previously been investigated by the SEC for tweets about Tesla and ordered to gain permission from the electric car manufacturer's board before posting about the company.
He was also unsuccessfully sued for defamation by a diver who he referred to as a 'pedo guy' on Twitter during the rescue of a group of Thai youth footballers from a flooded cave in 2019.
Last year, Musk caused further controversy when he polled his Twitter followers about whether he should sell a 10% stake in Tesla, causing the company's stock price to fall by around 5% after 57.9% of the 3.5 million people who voted on his poll backed the proposal, triggering a sell-off.
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