Elon Musk has a lot to thank Twitter Inc. investors for, as he has already made more than $1 billion after disclosing that he bought a boatload of the social media company’s stock.
In a 13-D filing with the Securities and Exchange Commission late Tuesday, Tesla Inc.’s
“Technoking” Musk said he owned a 73.12 million-share stake in Twitter
representing 9.1% of the shares outstanding, and implied that he would take an active role in the company.
In the filing, he also disclosed when he started buying the stock and at what price.
Based on a MarketWatch calculation of the purchase, Musk paid $2.64 billion to buy 73,115,038 Twitter shares, at a weighted average price of $36.157.
When he finished buying the stock on April 1, the stock closed that day at $39.31, meaning the value of his purchases had already increased by about $230.6 million to $2.87 billion.
With the stock rallying 3.1% in morning trading Wednesday, it has climbed 33.6% since the initial disclosure of Musk’s stake was made before the April 4 open, adding about $966.6 million to Musk’s kitty.
His stake was now worth $3.84 billion, or about $1.20 billion more than what he paid for it.
Late filing may have helped
Musk passed the 5% ownership threshold of Twitter on March 14, when he had purchased 41.82 million shares of Twitter at a weighted average price of $34.834.
SEC rules require disclosure of stakes of 5% or more with 10 calendar days of reaching that threshold, which would suggest a filing should have been made on March 24. From the close that day through April 1, when Musk finished buying his stake, he was able to buy 13.14 million Twitter shares for $513.3 million, at a weighted average price of $39.056.