San Francisco (AP) — Elon Musk, one of Twitter’s largest shareholders, has reversed the course and will not join the company’s board less than a week after winning a seat.
Twitter CEO Parag Agrawal announced the news and suggested changes to Twitter, including making the site ad-free, following Musk’s tweet over the weekend. Almost 90% of Twitter’s 2021 revenue came from advertising.
“Earon’s appointment to the board was scheduled to officially take effect on April 9, but Earon shared not attending the board that same morning,” Agrawal originally sent to Twitter employees. I am writing in the reposted memo that was posted. “I think this is the best.”
Agrawal did not provide an explanation for Musk’s explicit decision. The board said it understands the risks of having Musk, the company’s largest individual shareholder, as a member. But at the time, he believed, “having Earon as a fiduciary of the company, like all board members, must act in the best interests of the company and all its shareholders.” Is writing.
It was only a week ago that a regulatory filing revealed that musk had rapidly accumulated a stake in just over 9% of its social media platform. Mercury billionaires have been buying stock in batches almost every day since January 31st. Only the Vanguard Group’s investment trusts and ETF suites manage more Twitter stock.
According to a regulatory filing, Twitter quickly took its seat on the board, provided Musk did not own more than 14.9% of the company’s outstanding shares.
Since Musk withdrew his contract, he is free to build larger stocks on Twitter. Perhaps because they are trying to buy a company or pushing a new director’s slate to change direction.
Harry Kraemer, a clinical professor at Northwestern University’s Kellogg School of Management, said:
That is because the responsibility of the members of the board is to obtain the highest value for all shareholders of the company.
Former Chairman and Chief Executive Officer of Baxter International, Kramer said:
Musk said in a regulatory submission on Monday that he “has no pre-set plans or intentions” on how to harness his influence on Twitter, but potential business combinations, strategies, He said other issues could be discussed with the board and management. He added that he may express his opinion “through social media or other channels.”
Chesterspat, a professor of finance at Carnegie Mellon University and a former chief economist at the US Securities and Exchange Commission, said Musk could have discouraged him from rocking the boat too much if he took his seat on the board. Stated.
“There’s an old cliché about trapping someone in a tent,” Spatt said. “There was an advantage to restraining him a little.”
Musk is one of Twitter’s most noisy critics, but the sudden withdrawal from the board officially on Saturday may suggest that the relationship between Musk and Twitter will be tighter. ..
“At some point he was able to dismiss the director and replace the board,” Spat said.
In a letter to employees announcing Musk’s resignation, Agrawal wrote, “There may be some distractions ahead, but our goals and priorities haven’t changed.”
Twitter Inc.’s share price, which surged nearly 30% since Musk’s stock went public last week, rose 2.8% after fluctuating between rising and falling Monday mornings.
Mask’s 81 million Twitter followers have become one of the platform’s most popular figures, comparable to pop stars such as Ariana Grande and Lady Gaga. However, his prolific tweets could get into trouble with the SEC and others.
In 2018, Musk and Tesla agreed to pay a $ 40 million fine, and after tweeting that Musk has money to keep Tesla private for $ 420 per share, he tweeted. I have agreed to have my legal counsel approve. That didn’t happen, but the tweet soared Tesla’s stock price. A recent issue with Musk’s SEC could be the delay in notifying regulators of increased investment in Twitter.
Musk sent a number of tweets over the weekend, seeing potential changes on Twitter, before reversing the course at the board.
Many of them have since been removed, including ad-free Twitter suggestions and turning the social media company’s San Francisco headquarters into a homeless shelter.
Then Musk posted some mysterious tweets at the end of Sunday. Some of them show the meme “fairly, in your honor, my client was in goblin mode” and “explain everything”. Another later tweet was about an emoji with a hand over his mouth.
Musk described himself as an “absolutist of free speech” and said he did not believe Twitter adhered to the principle of free speech. Your account has been suspended because you violated Twitter content rules.
Twitter CEO and many of his board members publicly praised Musk last week, suggesting that he might take his ideas seriously. However, as a member of the board, the company has made it clear that it cannot make day-to-day decisions or change policies, such as overturning Trump’s ban.
Tesla CEO Elon Musk will not join Twitter’s board after all – Daily Local
Source link Tesla CEO Elon Musk will not join Twitter’s board after all – Daily Local