Elon Musk was 11 days late in publicly declaring he had amassed a large stake in Twitter. That omission may have earned him $156 million, according to a half-dozen legal and securities experts.
That’s because of a 50-year-old law that requires that investors notify the Securities and Exchange Commission when they surpass a 5 percent stake in a company. Musk reached that benchmark March 14, according to the filings. But he made his public disclosure only Monday.
In between, he continued to buy stock at the price of around $39 per share, bringing his total stake to 9.2 percent. After his disclosure, Twitter’s share price rose roughly 30 percent and is now above $50 per share.
The late filing netted Musk $156 million, said David Kass, a finance professor at University of Maryland’s business school. “I really don’t know what’s going through his mind. Was he ignorant or knowledgeable that he was violating securities law?”
If he owns 9.2% then he made a lot more than 156M. Looking at a chart it appears our new rubber baron squeeze-shagged that stock by at least 1.2B (~3.6B minus 2.4B @ 9.2% of market cap)
If he owns 9.2% then he made a lot more than 156M. Looking at a chart it appears our new rubber baron squeeze-shagged that stock by at least 1.2B (~3.6B minus 2.4B @ 9.2% of market cap)
From the delayed filing, that should be 9.2 - 5 = 4.2% of the market cap.
If he owns 9.2% then he made a lot more than 156M. Looking at a chart it appears our new rubber baron squeeze-shagged that stock by at least 1.2B (~3.6B minus 2.4B @ 9.2% of market cap)
Anything he made before he reached the 5% threshold, and anything he made after the tardy disclosure is fine. What’s at issue the ill gotten gains he realized during the 11 day period after he reached 5% ownership and before making the tardy disclosure at 9.2% ownership.