Because of Twitter’s share structure, Musk’s 9.2% stake will give him more influence if he had put the money into Facebook or Google.
Facebook/Meta founder Mark Zuckerberg holds a dual-class type share stake in his company. This special provision effectively allows him to override any Meta investors’ objections or Board objections. And he maintains ultimate control to do whatever he wants.
Twitter has a single share type. This means shares held by founder Jack Dorsey have equal voting power to shares held by Musk.
In 2021, Twitter investors used this power to get Dorsey to step down as CEO.
The move came after a heated activist campaign from shareholder Elliott Management which only held 4% of Twitter shares at the time of the power move. This is less than half of Musk’s current stake.
Musk’s investment in Twitter may just be to grow his portfolio. Or he may have decided to become an activist investor championing free speech.
Truth Social glitches
Former President Donald Trump, who was kicked off the social media platforms, has launched his own network, Truth Social. The platform bills itself as a conservative-friendly alternative to Twitter. And promises not to censor its users.