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Elon Musk Wins 9.2% of Twitter After Attacking It For ‘Free Speech’

For many years, this was his favorite method of communication with his adoring fans and die-hard regulators at the Securities and Exchange Commission.

So it’s perhaps not entirely surprising to learn on Monday that Elon Musk, the world’s richest man and electric vehicle visionary, has built up a 9.2 percent stake in Twitter, according to filings made with the SEC on Monday.

The immediate impact of the news was simply to make Musk richer, as Twitter shares jumped 26% in reaction to the news. Musk’s 73,486,938 Twitter shares were worth just under $2.9 billion at Friday’s closing price, but have skyrocketed to a $3.6 billion valuation as Musk members rush to buy the shares. position in the stock.

Musk is now estimated to be worth around $287 billion, making him certainly much richer than the top runner, Jeff Bezos, who is far behind second place with a mere $189 billion.

Just last month, Musk suggested that he wanted to create his own social media network, while promoting Twitter’s “free speech” approach.

“Freedom of speech is essential for a functioning democracy. Do you believe that Twitter strictly adheres to this principle? ‘ Musk asked his followers.

“Given that Twitter serves as a de facto public town square, failure to adhere to free speech principles fundamentally undermines democracy,” Musk added. “Need a new platform?”

Musk’s acquisition of a substantial stake in Twitter was revealed after years of sometimes forced tweets, during which time he has become one of the most followed contributors on the social networking platform. association and is also accused of using the platform to increase the value of its shares.

In 2018. He famously tweeted that he was “considering buying a Tesla privately for $420,” adding, “Capital secured.”

Musk later said he chose the number 420, the code for smoking weed in cannabis culture, to entertain his then girlfriend, musician and singer Grimes.

Grimes may have been entertained but the SEC was not, and the tweet triggered an investigation by them, who verified that Musk not only secured funding for the proposed transaction, but that “he was accused required to know that the potential transaction is uncertain and has many contingencies. ”

According to Musk, he calculated a price of $420 per share based on a 20% premium to that day’s closing price because he thought 20% was ‘ standard premium’ in private transactions.

“This calculation results in a price of $419 and Musk says that 7 Case 1:18-cv-08865 Document 1 Filed 09/27/18 Page 8/23 he rounded the price to $420 because it is close Here he was looking at what numbers mean in cannabis culture and thought his girlfriend ‘would find that funny, admittedly it’s not a great reason to choose the price’ . “

The company eventually settled with Musk, and he was ordered to pay $20 million and step down as Tesla chairman. Tesla had to pay an additional $20 million. Musk also had to agree that he would not post tweets without the prior approval of the company’s attorneys. The billionaire later sought to challenge that settlement, saying that the SEC used the court settlement to “trample on Musk’s First Amendment rights and impose previous restrictions on the speech.” his expression”.

The SEC recently revealed that it is investigating Musk again in a tweet. This time, the derogatory message was a post from November 2021 in which he asked his 80 million followers whether he should sell his 10% stake in Tesla.

The SEC is looking to establish if Musk obtained the necessary approvals from the company’s attorneys before posting the announcement.

Musk is also said to be being investigated to see if he tipped off his brother about the probe.

Musk blamed the investigation on his brother on an SEC enforcement official “sharpening his very small ax again.”

https://www.thedailybeast.com/elon-musk-scoops-up-92-percent-of-twitter-after-attacking-it-over-free-speech?source=articles&via=rss Elon Musk Wins 9.2% of Twitter After Attacking It For ‘Free Speech’

Russell Falcon

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