Elon Musk made ~$750 million in 5 hours from his 9.2% stake in Twitter, roughly double Twitter’s net income over the last 3 years | tech news

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There is a popular saying that it takes money to make money. This is exactly what happened to the richest person in the world and Tesla CEO Elon Musk. We reported earlier today that Musk acquired a 9.2% stake in Twitter for a total of approximately $2.89 billion based on Friday’s close, making Musk the largest shareholder in the social media platform.

Immediately following the news, Twitter shares surged more than 29%, giving Musk a return of about $750 million in just 6 hours from his $2.89 investment. The amount is roughly double Twitter’s net revenue over the past 3 years.

Musk now owns 73,486,938 shares of Twitter, for a 9.2% passive stake in the company, according to a Securities and Exchange Commission (SEC) filing released Monday.

The purchase comes less than two weeks after Musk criticized Twitter and questioned people on Twitter about whether it adheres to free speech principles. “Given that Twitter serves as a de facto public marketplace, failure to uphold the principles of free speech fundamentally undermines democracy,” Musk tweeted. “What is to be done?”

On March 26, Musk hinted at launching his own social media platform as Twitter doesn’t encourage freedom of expression. Then, in a follow-up tweet, Elon Musk told his 79 million Twitter followers that he was seriously considering the idea of ​​creating his own social media platform. The revelation came after Musk’s friend Pranay Pathole tweeted asking if Musk was considering building a new social media platform.

Musk, 50, polled his more than 80 million followers on Twitter last month, asking them if the company upholds free speech principles. After more than 70% said no, he asked if a new platform was needed and said he was seriously considering starting one of his own.

Musk’s friend Pranay Pathole tweeted if Musk was considering building a new social media platform.

“Would you consider building a new social media platform @elonmusk? One that would consist of an open-source algorithm, one where free speech and respect for free speech are given top priority, one where propaganda is very minimal. I think such a platform is needed.”

Musk replied, “I’m seriously considering it.”

Kudos to Stratechery founder Ben Thompson for first breaking the news.

Ben also warned, “(And yes, you don’t make money until you sell, and yes, I already regret the answers to those when I wake up…).”





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