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Billionaire investor Carl Icahn amassed a stake worth well over $500 million in Twitter Inc (NYSE:TWTR) before Elon Musk’s u-turn yesterday sent shares soaring higher.
The Wall Street Journal reports that Icahn was building a stake in Twitter in the past few months, therefore betting that Musk will acquire the social media company one way or another. Icahn was buying Twitter shares in the mid $30s via his Icahn Enterprises LP, the report added, meaning he likely profited more than $250 million.
Twitter shares soared over 22% yesterday to close at $52.00 after Elon Musk notified the social media company, he intends to complete the $44 billion deal at the original price. Other big hedge funds, such as D.E. Shaw Group and Daniel Loeb’s Third Point LLC, also made sizeable bets on Twitter in recent months.
Icahn’s view was that Musk will not go on trial because he looked likely to lose. He also saw Twitter as a long-term investment in case Musk won in court, bearing in mind Icahn was buying shares in the mid-$30s.
“Buying Twitter is an accelerant to creating X, the everything app,” Musk tweeted last night.
