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    Twitter shares zoom as Elon Musk picks 9.2%. His polls point at 'consequences'

    Twitter shares zoom as Elon Musk picks 9.2%. His polls point at 'consequences'

    Twitter shares zoom as Elon Musk picks 9.2%. His polls point at 'consequences'
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    By CNBCTV18.com  IST (Updated)

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    Elon Musk now owns 9.2 percent stake in Twitter, which is worth $2.89 billion per the last trading price of Twitter. The news led to Twitter shares surging more than 25 percent in the premarket.

    After days of running polls relating to Twitter on the social media platform, a filing on US Securities and Exchange Commission (SEC) showed that Telsa chief executive Elon Musk had picked a big but passive stake in the company in mid-March.
    According to the filing, Musk, who has 80.1 million Twitter followers, picked 73,486,938 shares of the platform. This means Musk now owns 9.2 percent stake in Twitter, which is worth $2.89 billion per the last trading price of Twitter. The news led to Twitter shares surging more than 25 percent in the premarket.
    On March 24, Musk started a Twitter poll, saying, "Twitter algorithm should be open source". To this, he got 1,117,574 votes, and 82.7 percent voters agreed with him.
    A day later, had put up another poll, saying: "Free speech is essential to a functioning democracy. Do you believe Twitter rigorously adheres to this principle?" He had added a warning: "The consequences of this poll will be important. Please vote carefully." Of the 2,035,924 votes this poll received, 70.4 percent agreed that Twitter did not adhere rigorously to the principle of free speech.
    In a separate tweet, Musk said he was giving serious thought to creating a new social media platform. "Given that Twitter serves as the de facto public town square, failing to adhere to free speech principles fundamentally undermines democracy. What should be done? Is a new platform needed?" his tweet read.
    This has investors believe Musk is planning something more in this space, leading to them bidding shares higher.
    “Musk could try to take a more aggressive stance here on Twitter,” Wedbush analyst Dan Ives told CNBC. “This eventually could lead to some sort of buyout.”
    Musk tweets very regularly and engages with his followers quite frequently. Some of his tweets have got him into trouble and have led to wild swings in Tesla's shares.
    Also, last month, Musk asked a federal judge to nullify a subpoena from securities regulators and throw out a 2018 court agreement in which Musk had to have someone pre-approve his posts on Twitter.
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