Jack Dorsey’s barely out the door and Elon Musk is moving in on his territory as the single largest outside shareholder in Twitter.
Yesterday, everyone’s (least) favorite billionaire CEO made himself the single largest outside shareholder of Twitter (NYSE: TWTR).
But what are Elon Musk’s plans with the site that seems to be his favorite pastime?
“Twitter is Elon Musk’s playground”
We asked MyWallSt Financial Analyst Michael O’Mahony for his thoughts:
“As we know, Twitter is Elon Musk’s playground in which he likes to sow discord, move markets, and profess his inner thoughts to his army of 80 million followers. However, that does not mean he’s happy with the platform, which has gotten him into plenty of hot water in the past. Just a week after asking “Is a new platform needed?”, the news of him accumulating a significant stake in the company is sure to make shockwaves as investors and commentators alike will unravel the potential his presence will have on the business.
Is the near $3 billion purchase — which amazingly only accounts for roughly 1% of Musk’s net worth — a gateway for him to bestow more influence on one of his favorite pastimes? Or is it just another in a long line of seemingly random and chaotic chess moves of a bored megalomaniac who wants to see the manifestation of his own power?
For Twitter shareholders, it probably isn’t a bad thing that one of the world’s most successful creators of value has become invested in the success of the company. However, I’m sure it will come with its fair share of headaches and headlines too. Considering the stock has been stagnant since its IPO in 2013, any shake-up like this should be welcome.”
Given the number of polls that he has posted lately in relation to the platform’s algorithm and policy, it seems highly likely that Musk intends to make changes over at Twitter HQ.
For better or worse? It may be too early to tell.