Vanguard Holdings, a Pennysylvania-based investment company has become the largest shareholder of Twitter after acquiring a 10.3 per cent stake in the company, according to a regulatory filing. The company now owns 82.4 million shares of Twitter. Notably, on April 4, Elon Musk acquired a 9.2 per cent stake in the microblogging site, thus becoming the largest shareholder of the company.
Vanguard Holdings now has a valuation of $3.78 billion, based on Twitter’s stock closing price on Wednesday, according to a report by The Wall Street Journal.
As per the report, “Vanguard isn't making a directional bet on Twitter. Instead, the majority of its assets are in the index and other so-called passive funds. The firm often sides with management on voting issues and doesn’t advocate for changes like a hedge fund or activist investor might.”
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The development comes hours after the Space X and Tesla CEO offered to buy Twitter worth $41.39 billion. He has offered $54.20 per share, at a 38 per cent premium to the closing price of Twitter’s stock on April 1, the last trading day before Musk bought the majority stake in the company.
Musk currently owns 73.5 million shares of common stock in his personal capacity. Musk's stake in Twitter is considered a passive investment, which means Musk is a long-term investor that's looking to minimize his buying and selling of the shares.
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