Activist investor Bill Ackman is interested in entering a deal with Elon Musk’s X, formerly Twitter, as reported by the Wall Street Journal. Ackman is eager to take Musk’s social media platform public through his newly approved investment vehicle.
Last week, Ackman’s hedge fund, Pershing Square Capital Management, obtained approval for a new financing vehicle named SPARC, or a special purpose acquisition rights company. The vehicle is expected to support private companies in raising $1.5 billion or more in funds and going public.
The report mentioned that Bill Ackman is uncertain if X is interested in this deal. He believes that deeper assessments are needed to determine the feasibility of any such potential agreement.
Ackman and X
Ackman is a regular user of X, as he keeps posting his views and ideas on several topics, including his support for presidential candidates Vivek Ramaswamy and Robert Francis Kennedy Jr.
Furthermore, the billionaire investor previously proposed the idea of adding a button to certain tweets, which could take users to the most popular tweet presenting a counterargument. Importantly, Musk gave a positive response to this idea.
It is worth mentioning that Ackman’s Foundation made a modest investment in X when Elon Musk took the platform private in 2022.
Bill Ackman’s Top Holdings
The top five holdings in Ackman’s portfolio are Chipotle (NYSE:CMG), accounting for 18.86% of the portfolio; Restaurant Brands International (NYSE:QSR) with 16.6%; and Lowe’s Companies Inc. (NYSE:LOW) with 15.51%. Further, Hilton Worldwide (NYSE:HLT) comes in fourth with 12.55%, and finally, Howard Hughes (NYSE:HHH) makes up 12.09% of the portfolio.
Of the three companies, HHH stock boasts a Strong Buy consensus rating on TipRanks along with a Smart Score of eight. This suggests that the stock has the potential to outperform the broader market over the long term.
