The Clap Twitter (NYSE: TWTR) soared 27% after Elon Musk acquired a 9.2% passive stake in the company worth $2.89 billion.
Claps Class A passive stake is one that doesn’t seek to influence or change control of a company.
The deets This move makes Musk the largest outside twitter shareholder. Less than a couple of weeks ago Musk was out on Twitter criticizing the platform for “failing to adhere to free speech principles.”
Why this matters The deal is worth ~1% of Musk’s net worth. Considering this relatively small investment, investors expect Musk to take a more aggressive position, be it through increasing his stake or taking a controlling stake in Twitter.