Billionaire investor Carl Icahn has scored a $250 million gain on Twitter stock by calling Elon Musk's bluff, report says

Carl Icahn.
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Carl Icahn piled about $500 million into Twitter in recent months, The Wall Street Journal said.
The Icahn Enterprises chief has likely notched a $250 million gain on the social media stock.
Twitter shares surged 22% on Tuesday after Elon Musk offered to complete his buyout of the company.

Carl Icahn has scored an estimated $250 million gain on Twitter stock by calling Elon Musk’s bluff.

The billionaire investor and Icahn Enterprises chairman plowed about $500 million into the social-media company in recent months, The Wall Street Journal reported on Tuesday. He bought the shares in the mid-$30s, sources told the newspaper, suggesting he purchased around 14 million shares or close to 2% of the business.

Tesla CEO Elon Musk agreed to buy Twitter for $54.20 a share in April, sending its stock price towards that level. However, he tried to back out of the deal over the next few months, prompting a lawsuit and sending Twitter shares down again. As a result, Icahn was able to buy them at a steep discount to Musk’s offer.

Twitter stock surged 22% to $52 on Wednesday, after Musk relented and offered to complete his buyout of Twitter at the originally agreed terms. Icahn’s stake, assuming he hasn’t sold it yet, is now worth about $750 million on paper — a 50% gain in a few short months.

Icahn bought into Twitter because he doubted Musk would proceed with a court battle he appeared likely to lose, The Journal reported. The activist investor also pegged Twitter’s long-term share value in the mid-$30s, and therefore felt his downside was limited, the newspaper said.

DE Shaw, Dan Loeb’s Third Point, and other high-profile investors have also bet on Twitter stock in recent weeks, positioning them to benefit from Musk buying the company, sources told the newspaper.

Icahn has made several lucrative bets on technology stocks over the years, including Apple and Netflix. However, he missed out on pocketing as much as $40 billion by selling his stakes in both of those companies several years ago.

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