Elon Musk Acquires $2.89 Billion Twitter Stake
According to a US securities filing, Elon Musk has taken a 9.2% stake in Twitter.
The shares are held by the Elon Musk Revocable Trust, of which he is the sole trustee. The news sent Twitter shares soaring about 25% in pre-market trading.
Shares of other social media firms, including Meta Platforms and Snapchat owner Snap Inc, were also trading higher
Elon Musk, the world's richest man worth an estimated $273billion, made his next big move.
The Tesla founder bought 73,486,938 Twitter shares on 14 March, according to the Securities and Exchange Commission.
The stake is worth $2.89bn (£2.20bn), based on Twitter's closing price on Friday.
Musk's stake in Twitter is considered a passive investment, which means he is a long-term investor that's looking to minimize his buying and selling of the shares.
Passive investment is a strategy for slowly building wealth by long-term ownership of stocks rather than engaging in frequent trading, which is often accompanied by additional fees and can be more volatile.
The stake makes him one of the largest shareholders in the company and is more than four times the 2.25% holding of Twitter founder Jack Dorsey.
Musk is a regular Twitter user with more than 80 million followers, although recently he said he is giving "serious thought" to building a new social media platform.
He regularly uses Twitter to share updates from the companies he owns - including SpaceX and Neuralink. He is also known for sharing memes, adding to his popularity among fans.
Elon Musk saw the valuation of his Tesla car company surpass a market value of $1 trillion last autumn, making it the fifth such firm to reach the milestone, after Apple, Microsoft, Amazon and Google-owner Alphabet.
Soon after he took to Twitter to ask users if he should sell a 10% stake in the electric carmaker.
More than 3.5 million Twitter users voted, with nearly 58% voting in favour of the share sale leading to Musk selling around $5bn (£3.7bn) of shares in the firm in November.
Elon Musk has over 80 million followers on Twitter since joining in 2009 and has used the platform to make several announcements.
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