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The tycoon would not have informed about his purchase in the period established by the SEC (Securities and Exchange Commission).
At the beginning of April, tycoon Elon Musk bought 9.2 percent of Twitter shares, becoming the largest shareholder of the social network.
The CEO of SpaceX and Tesla, Elon Musk is the richest man in the world, with a net worth of close to 240 billion dollars.according to information from Statista.
When it became known that he had bought a considerable percentage of Twitter shares, in some way, it was a movement that seemed possible, since the South African is one of the most active characters in said social network.
So far, the tycoon has a legion of more than 78 million followers, being one of the most dynamic users on the social network.
Now, as we already mentioned, Elon Musk is Twitter’s largest shareholder, holding 73,486,938 shares and worth $2.88 billion, based on Twitter closing values on Friday, April 1, 2022.
Today, however, it has emerged that the tycoon seems to be in trouble, precisely, for the purchase of said shares of Twitter, because one of the investors of the social network, Marc Bain Rasella, is suing the millionaire after he bought five percent of the company’s shares on March 14 and did not report it to the SEC (Securities and Exchange Commission) until April 4.
According to what Rasella mentions, this movement did not allow the shares of the social network to rise in price, a fact that was used by the tycoon to acquire four percent more of the company’s shares and at a lower price.
“When Musk finally filed the required Exhibit 13, thereby disclosing his involvement with Twitter, the Company’s shares increased from a closing price of $39.91 per share on April 1, 2022, to closing at $49.97 per share. stock on April 4, 2022, an increase of approximately 27 percent”mentions part of the lawsuit.
And it is that investors must notify the SEC when they acquire at least 5 percent of the shares of a company. In fact, the agency grants 10 days to report when such an event occurs.
The case of Elon Musk is in the spotlight, because the South African tycoon reported his purchase 21 years later. Information published in The Washington Post reveals that the purchase of 5 percent of the company was completed on March 14, and the Securities and Exchange Commission made it public until April 4.
So far, the billionaire has not declared anything about it and has even stayed away from social networks, where he is usually very active. Similarly, he has not spoken about how the purchase of that 9.2 percent of Twitter was carried out, which makes him the company’s largest shareholder.
The last thing that was known after the acquisition of Elon Musk was about a series of proposals that, it is estimated, he plans to implement on Twitter.
On the other hand, it is said that the employees of the company are not satisfied with the fact that Musk has closed said purchasefearing that, from now on, the decisions made by the social network may have a negative impact on the content that is published on the platform, allowing tweets and other publications that favor harassment and misinformation.