Elon Musk taking a stake in Twitter Inc (NYSE:TWTR) has made headlines around the world. While, news of him not taking a proposed position on the company’s Board of Directors has also made headlines and sent the price of Twitter stock down.
Could the move signal taking a larger stake in Twitter? Here’s what Benzinga users said.
What Happened: It was revealed last week that Tesla Inc (NASDAQ:TSLA) CEO Elon Musk took a 9.2% stake in Twitter. The stake was initiated in Twitter back on Jan. 31, 2022 and Musk continued to buy shares through January, February and March.
Twitter announced Musk would join the board. Days later, Twitter CEO Parag Agrawal said Musk would no longer be joining the board, a move that puzzled many investors.
One item that should be noted is if Musk joined the board, his stake in Twitter would have been capped.
Under the terms of the agreement of joining the Board of Directors, Musk could not become the owner of more than 14.9% of Twitter shares while serving on the Board or 90 days after.
With Musk not joining the board, some have speculated this could lead to him acquiring a larger stake in Twitter and even pursuing a takeover of the company.
An updated 13D filing shows that Musk may engage in discussions with the Twitter Board of Directors on potential business combinations or strategic alternatives. Musk’s stake in Twitter is listed as an active one and for “investment purposes.”
Related Link: Elon Musk Began Buying Twitter Shares In January: Here's How He Built His Stake (Graph)
Poll Results: Benzinga took to Twitter to ask its followers what they think of the Musk news and how it could impact his stake in Twitter in the future.
“What will Elon Musk’s stake in Twitter be in 6 months?” Benzinga asked.
The possible answers were:
- Below 9%
- The Same (around 9%)
- 10% to 20%
- Over 20%
The poll was used to see if people thought Musk would walk away from the battle with Twitter over making changes, hold his position for at least six months or acquire more shares.
The poll results were:
- Over 20%: 38.7%
- 10% to 20%: 27.3%
- The Same (around 9%): 19%
- Below 9%: 15%
What will Elon Musk's Stake in Twitter $TWTR be in 6 months?
— Benzinga.crypto (@Benzinga) April 11, 2022
No answer got the majority of the votes, with "over 20%" the winner with 38.7% of the vote. Each answer also got at least 15% of the vote, including the last place answer "below 9%," which suggests that Musk will sell his stake completely.
The majority of voters (66%) see Musk owning 10% or more of Twitter in the next six months, which suggests he will buy more shares over the coming months.
Photo: Courtesy of Daniel Oberhaus on Flickr
