Tesla CEO Elon Musk鈥檚 surprise stake in Twitter is just 鈥渢he first strike鈥� to shake up the company, according to a Wall Street executive.
Dan Ives, managing director of U.S.-based investment firm Wedbush Securities, Ives told CTV National News Washington Bureau Correspondent Richard Madan that Musk is laying the groundwork to play a more 鈥渁ctivist role鈥� at Twitter
鈥淚t鈥檚 not been a secret,鈥� Ives said in a recent interview. 鈥淪ocial media, he's not happy in terms of the Twitter platform.鈥�
鈥淚f there was a time to strike, this was it and I believe that Musk is going to ultimately force some significant changes at Twitter in the coming months.鈥�
On March 24, Musk bought a 9.2 per cent stake in the social media platform, according to filings with the U.S. Securities and Exchange Commission. The purchase is valued at US$3 billion of Twitter鈥檚 closing price and makes him one of the largest shareholders in the company.
News of Musk鈥檚 purchase sent Twitter shares soaring.
Musk has accused Twitter of stifling freedom of speech on the platform.
鈥淕iven that Twitter serves as the de facto public town square, failing to adhere to free speech principles fundamentally undermines democracy. What should be done?"
Musk has mused about launching his own social media platform to rival Twitter, launched by his friend Jack Dorsey, who resigned as CEO of Twitter last year.
Ives thinks Musk will buy more Twitter shares to force changes at the executive level, which could set the stage for a hostile takeover.
鈥淭his is just the first step in what's going to be a broader Game of Thrones going on versus Twitter 鈥� and Musk,鈥� Ives said.
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