Elon Musk is gold for Twitter investors, the stock has been rising since 9.2% of the shares

Twitter investors can thank Elon Musk, who went from an active user to the company’s largest shareholder after being ridiculed over the social media giant’s conflicting principles of free speech.

It is a little less than two weeks ago that the so-called “freedom of speech autocracy” surprised 9.2% of the shares in the social media platform. This month, Twitter shares have risen nearly 17%, while the S&P 500 has fallen 2% over the same period.

Ticker Security Last Change Change %
TWTR TWITTER INC. 45.85 +1.37 +3.07%
SP500 S&P 500 4446.59 +49.14 +1.12%

Since revealing the share, Musk has kept Twitter management and Wall Street investors eager to know more about his plans for the company on his toes.

On Thursday, they might get some hints about what’s next. Musk will be interviewed by the head of TED Conferences Chris Anderson and be able to address his next possible move with Twitter, adding to what has already been a methodical timeline.


January 31: Musk begins buying Twitter shares

According to one 13D archiving with the Securities and Exchange Commission, Musk made a series of cash purchases of Twitter shares between January 31 and April 1. Purchases ranged from as low as $ 32.80 per share to as high as $ 40.30 per share. In total, he bought 73.5 million shares for about $ 2.9 billion.

March 14: Musk reaches a 5% threshold, requiring publication of efforts

The SEC requires anyone acquiring more than 5% of a company’s joint share to disclose their holdings within 10 calendar days. The 13D filing shows that Musk appears to have passed the 5% threshold on March 14, but he did not reveal the share until April 4.


March 25-26: Musk urges Twitter for free speech

On March 25, Musk tweeted a poll in which he asked his followers whether Twitter “strictly adheres” to the principles of free speech. About 70.4% voted no, while 29.6% voted yes.

A day later, he asked his followers what needed to be done to rectify the situation, and launched the possibility of launching a new platform.

April 5: Twitter announces Musk’s board appointment

On April 5, a day after the news of Musk’s 9.2% stake, Twitter CEO Parag Agrawal announced plans to appoint Musk to the company’s board of directors.

“I’m excited to share that we’ve appointing @elonmusk to our board! Through conversations with Elon in recent weeks, it became clear to us that he would bring great value to our board,” tweeted Agrawal. “He’s both a passionate believer and an intense critic of the service, which is exactly what we need on @Twitter, and in the boardroom, to make us stronger in the long run. Welcome Elon!”

Musk responded to the tweet, noting that he was looking forward to helping the board “make significant improvements to Twitter in the coming months!”


April 6: Musk signals that he could take a more active role on Twitter

On April 6, Musk filed 13D with the SEC, which outlined the specifics of his Twitter stock purchase and suggested he could take a more active role on Twitter. The bet was originally announced in a 13G, which is typically reserved for passive investors.

It also stressed that he would not be allowed to own more than 14.9% of Twitter shares while on the board or for 90 days after. The documentation notes that Musk’s term of office would expire at Twitter’s annual meeting in 2024.

April 9: Musk rejects board seat

On April 9, Musk revealed in a new update to his 13D file that he refused to join Twitter’s board. The application also signaled several ways in which he could exert influence on Twitter in the future.

The filing states that Musk may engage in discussions with Twitter’s board of directors or management team “about, including, without limitation, potential business combinations and strategic alternatives, business operations, capital structure, management, management,” strategy or matters relating to him. It adds that Musk can express his views directly to board members or directors “and / or the public through social media or other channels regarding [Twitter’s] business, products and services. “

“Elon’s appointment to the board was officially due to take effect on 4/9, but Elon announced the same morning that he will no longer be a member of the board,” Agrawal said in a note to staff and subsequently tweeted on April 10. “I believe in this. Is for the best.”

Although the Musk archive notes “have no current plans or intentions that would result in or relate to any of the transactions described,” it warns that the plans may change based on several factors, including “the relative attractiveness of alternative business and investment opportunities. “

Going forward, Wedbush Securities analyst Dan Ives believes Musk could be ready for a “Game of Thrones” -style battle against Twitter, with “the high probability that Elon will take a more hostile stance toward Twitter and build his active stake in the company further. “

Musk who no longer joins the Twitter board can lead to a number of scenarios, including 1) joining a private equity partner and forcing major strategic changes on Twitter and / or a sale, 2) creating more noise and anxiety for Twitter Board / directors with various proposed platform changes, or 3) say Musk “game over” reduce his efforts and go home, “Ives wrote in a note to customers Monday. “In our opinion, its likely path 1 or 2 with Street is now focused on Musk’s next poker (next application / share on Twitter) in this ongoing soap opera between Elon and Twitter.”


Musk’s Ted Talk is expected to take place between 11:45 ET and 14:30 ET on Thursday.

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