The Elon-Twitter Corporate Hostage Negotiation

Elon Musk
Photo by Maja Hitij/Getty Images
William D. Cohan
April 13, 2022

You’ve got to hand it to Elon Musk, the world’s richest man. He knows how to get attention, and he knows how to get what he wants. Since January 31st, Musk has spent around $2.6 billion in 43 separate open market purchases to obtain a 9.1 percent stake in Twitter. It’s larger than any other shareholder—with Vanguard and Morgan Stanley, as broker, a close second and third—but a mere 1 percent of his net worth, so pocket change. More notably, at least on Wall Street, is that Musk ignored the disclosure deadline and that he filed a Form 13G, implying that his investment was “passive” when he should have filed a Form 13D form, meaning that he was intending to be an “active” investor. The difference between a 13G filing and a 13D filing has always been pretty clear on Wall Street: 13G “good”; 13D “danger.” (He’s now being sued over his disclosure goof.)