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How Elon acquired $TWTR

Monday, April 4th

Elon Musk buys 73,486,938 shares of Twitter, which represents a 9.2% passive stake in the company. This makes him the largest outside shareholder of Twitter. The stake is worth $2.89 billion, based on Twitter’s closing price Friday, April 1st.

The following Monday (April 4th), Twitter stock surged more than 27% after this news. Elon Musk had 80M followers on Twitter at the time (currently has 118M).

it was discovered later on that he had been pumping money into the platform for 21 days after he reached a legal benchmark of owning 5 percent of the company March 14. The Securities and Exchange Commission requires disclosure on this kind of investment within 10 days.

Legal and securities experts told the Washington Post last week that by delaying the information Musk was able to continue buying Twitter stock at a price much lower than it would be post-announcement, effectively earning him $159 million, far greater, it would seem, than any possible SEC fines.

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Tuesday, April 5th

Twitter then offers Elon Musk a board seat.

An April 5 SEC filing from Twitter on Musk's expected board membership said he would be limited to a 14.9 percent stake in the company, generally speaking, as long as he had a governance seat.

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Sunday, April 10th

The Twitter chief said board membership was to have been finalized Saturday, but on Saturday morning Musk declined the position.

Now that he's walking away from the board position, he can theoretically increase his position as he wishes.

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  • Elon was then offered a seat on the board of Twitter and declined the offer
  • Twitter stock is valued at $54.20 / share
  • This marked a 38% premium over the stock price the day before Musk revealed his stake in the company
  • Elon Musk on Thursday said he has lined up commitments worth $46.5 billion to finance a Twitter takeover deal, one week after he first made a public offer to buy the social media company.