Twitter’s share price has jumped more than 25 percent after Tesla Motors founder Elon Musk bought a 9.2 percent stake in the social media giant he recently criticised.
The US Securities and Exchange Commission said on Monday that the South African-born billionaire owned 73,486,938 shares in Twitter, with a value of $2.89 billion based on Friday’s closing price.
Twitter shares jumped by more than 25 percent in pre-market trading on the news.
Musk had recently attacked Twitter for allegedly censoring posts and banning users, and threatened to set up a rival site.
“Given that Twitter serves as the de facto public town square, failing to adhere to free speech principles fundamentally undermines democracy”, Musk tweeted on 26 March.
“What should be done?” he queried, adding: “Is a new platform needed?”
One market analyst speculated that Musk might be planning a takeover of the Big Tech firm founded by fellow billionaire nerd Jack Dorsey.
“Musk could try to take a more aggressive stance here on Twitter. This eventually could lead to some sort of buyout”, Dan Ives of Wedbush told CNBC’s “Squawk Box” on Monday. “This makes sense given what Musk has at least been talking about, at least from a social media perspective.”
Read More: Twitter Stocks Surge After Elon Musk Buys 9% Stake