Hedge fund billionaire Bill Ackman expressed serious apprehension following a court order that suspended Elon Musk’s social-media platform X in Brazil. Ackman warned that the ruling could drive away investors and inflict damage upon the country.
Supreme Court Justice Alexandre de Moraes issued an order on Friday instructing internet service providers in Brazil to block access to X. This decision came in response to X’s refusal to appoint a legal representative in the nation for managing requests to take down accounts allegedly disseminating political misinformation.
Justice de Moraes also directed banks to freeze funds belonging to Starlink, another business under Musk’s ownership, as collateral for fines levied on X due to non-adherence to court rulings.
Ackman, who heads Pershing Square Capital Management, expressed grave concerns in an online post via X on Saturday night, stating that the “illegal shutdown of X and freezing of Starlink’s accounts are steering Brazil towards becoming an unattractive market for investment.” He drew parallels with China’s actions which led to capital outflow and plummeting valuations. Ackman warned that unless Brazil promptly reverses course on these actions, a similar fate may befall the South American nation.
Exploring Impacts on Tech Giants
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.