Tesla CEO Elon Musk, who has expressed concern over protecting freedom of speech in the "de facto public town square" of Twitter, disclosed on Monday a large stake in the social media company, sending shares soaring.
Mr Musk, who has more than 80 million followers on the micro-blogging platform, became its largest shareholder following the purchase of 73.5 million shares or 9.2 per cent of common stock, according to a securities filing.
The investment is worth about $2.9 billion (A$3.8 billion) based on Friday's share price. Mr Musk is currently the world's richest man, (A$381 billion), according to Forbes.
Twitter shares rocketed higher on the announcement, surging more than 20 per cent to $47.86 (A$63.45) in mid-morning trading.
"We would expect this passive stake as just the start of broader conversations with the Twitter board (and) management that could ultimately lead to an active stake and a (potentially) more aggressive ownership role of Twitter," analysts Daniel Ives and John Katsingris of Wedbush wrote in a note.
'Just buy Twitter'
Disclosure of Mr Musk's stake follows a recent poll launched by the billionaire to his followers.
Saying "free speech is essential to a functioning democracy," Mr Musk on 25 March launched a survey on Twitter that asked: "Do you believe Twitter rigorously adheres to this principle?"
More than two million people voted in the poll, with over 70 per cent saying "no."
"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?" he continued the next day. "Is a new platform needed?"
"Just buy Twitter," was one of the first responses from tens of thousands of users.
United States political conservatives have long complained that the platform censors right-wing voices, an assertion the company denies.
Its critics in particular cite Twitter's decision to ban Donald Trump over the former US president's role in fomenting the 6 January 2021 attack on the US Capitol.
Twitter has also at times punished Representative Marjorie Taylor Greene, a far-right Georgia congresswoman who has repeatedly posted misinformation about COVID-19 and vaccines against it.
Ms Greene welcomed Mr Musk's investment on Twitter, tweeting "freedom of speech restored will enable us all to defeat them."
SEC deal
Mr Musk has cited the right to freedom of speech as a driver of his efforts to undo an agreement with the Securities and Exchange Commission (SEC) that tightened his use of the social media platform after he tweeted in August 2018 that funding was "secured" to take Tesla private.
The following month, Mr Musk agreed to pay $20 million (A$26.5 million) to settle SEC charges of securities fraud over the claim, and to institute new controls and procedures to oversee his communications.
But Mr Musk's lawyers have asked a federal court to cancel the agreement, saying the agency has pursued "endless unfounded investigations" into the Tesla boss and his company because Mr Musk "remains an outspoken critic of the government."
