Elon Musk has officially become Twitter’s largest shareholder, acquiring a 9.2% stake in the company, valued at approximately $2.89 billion, based on recent market close figures. This move follows Musk’s provocative questions to his massive Twitter following about the platform’s commitment to free speech. After polling over 80 million followers, with more than 70% of them answering negatively, Musk hinted at creating a new platform to better uphold these values.
Twitter’s stock saw a notable surge, climbing about 26% in premarket trading after the filing was made public, solidifying Musk’s substantial influence on the company. Known for his bold presence on the platform, the Tesla CEO has frequently faced controversies surrounding his tweets, including ongoing legal matters with the U.S. Securities and Exchange Commission related to his 2018 settlement.
Musk’s involvement is a significant development for Twitter, particularly as the company navigates under new leadership. Parag Agrawal, who took over as CEO in November after the unexpected resignation of co-founder Jack Dorsey, is now faced with added pressure to execute on ambitious growth goals. Agrawal’s plan includes boosting annual revenue to $7.5 billion and reaching 315 million daily active users by the end of 2023. Despite these aspirations, Twitter’s growth has not matched that of its industry peers, and the platform’s stock performance has often lagged behind.
Musk’s recent criticism of Twitter’s focus on NFTs, specifically the platform’s decision to integrate non-fungible token profile pictures, reflects his view that the company has lost sight of more pressing priorities. In a move that some see as a warning shot, Musk posted a meme mocking Agrawal’s leadership shortly after his appointment, drawing attention to the tensions surrounding Twitter’s direction.
As Musk holds sway over nearly 10% of Twitter, his influence is poised to shape the company’s future. Whether his involvement will lead to structural or strategic changes remains to be seen, but it is clear that the tech mogul is committed to making his mark on the social media giant.
