Any time an investor buys 5% or more of a company’s shares, they must disclose the purchase in filings with the Securities and Exchange Commission. Although a stake of less than 10% in a company is considered “passive” in the eyes of Wall Street, it could signal an effort by Musk to take a more active role in how Twitter is run. That is one of the factors prompting other investors to buy shares and drive up the price early Monday.
“I think he intends to go active and force change at Twitter,” said Dan Ives, tech analyst as Wedbush Securities. “This is a shot across the bow at Twitter’s board and management team to start discussions.”
But Ives said it’s probably not realistic for Musk or anyone else to try to start building a new, competing platform from scratch. Thus it makes more sense for him to try to change practices at Twitter itself.
Musk has 80 million Twitter followers, far more than any CEO.
Quoted from Various Sources
Published for: The Bloggers Briefing
