Elon Musk filed a new disclosure on his Twitter Inc. stake with the Securities and Exchange Commission on Tuesday, admitting that he invested in the company with the goal of effecting change and that his stock purchases began months ago.
Musk disclosed Monday morning that he had purchased 9.2% of Twitter’s
outstanding stock, but he did so on a 13G form that suggests the investment was passive, meaning he would not seek change at the company. Tuesday afternoon, he filed a form 13D, more often used by activist investors, that detailed an agreement the Tesla Inc.
chief executive reached with the social-media firm that was disclosed by Twitter earlier in the day.
The new filing requires more disclosure, and shows that Musk began accumulating Twitter stock on Jan. 31, with the purchase of more than 620,000 shares. Musk then purchased Twitter shares in every available trading session through April 1, with total daily shares purchased ranging from 371,075 on Feb. 15 to more than 4.8 million shares on Feb. 7.
The SEC requires that investors disclose when they have purchased more than 5% of a company’s stock on one of the two forms within 10 calendar days of hitting that threshold. Musk admitted on the first form he filed that he had passed that threshold on March 14, but did not disclose the purchases until April 4, missing the deadline by more than a week.
Twitter announced Tuesday morning that Musk would take a board seat in exchange for agreeing not to push his stake in the company to 15% or higher. The same information is reflected in Tuesday’s SEC filing from Musk.
After Monday’s original disclosure, Musk tweeted a poll asking if users wanted an edit button. After users voted overwhelmingly for “yse” instead of “on,” Twitter’s official communications account said Tuesday that the company is preparing to test such an offering on its subscription Twitter Blue service.
Twitter stock has increased 29.7% collectively in the two trading sessions since Musk first disclosed his stake in the company. Those gains have added more than $9 billion to Twitter’s market capitalization, which now stands at roughly $40.8 billion.