Elon Musk‘s involvement in Twitter, buying approximately 73.5 million shares in the social network, is considered a passive investment, meaning he is a long-term investor trying to minimize buying and selling shares.
However, with the purchase Musk becomes Twitter’s largest shareholder. The CEO of Space X has questioned the ability to communicate freely on Twitter, while industry analysts doubt that the businessman will stay out of the social network.
“We anticipate that this passive purchase will be the start of more extensive discussions with Twitter’s board and management that ultimately lead to an active purchase and possibly more aggressive ownership role in Twitter“, said Dan Ives, an analyst at WedBush Securities.
Shares of Twitter were up more than 25% before markets opened on Monday, while shares of Tesla were up slightly. In addition, in another tweet, Musk said that he was “seriously thinking” about creating a new social network.
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Earlier this past March, Musk asked a federal judge in the United States to overturn a subpoena from financial regulators and throw out a 2018 court settlement where Musk had to first have his Twitter posts approved.
Financial regulators said they had the legal authority to subpoena Tesla and Musk for their tweets, and that Musk’s attempt to nullify the deal is invalid.