Elon Musk isn't joining Twitter's board of directors after all.
Elon Musk isn't joining Twitter's board of directors after all
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| This doesn't mean Elon Musk won't still have some influence at Twitter, though. Credit: Jakub Porzycki / NurPhoto Via Getty Images |
Elon Musk's stint on Twitter's board of directors has ended before it even began. The SpaceX and Tesla CEO has scrapped plans to buff his resumé with a seat on Twitter's board, though his status as the company's biggest shareholder will still give him some influence over the platform.
The change in plans was announced by Twitter CEO Parag Agrawal on Sunday night. In an internal note he subsequently posted to Twitter, Agrawal stated that Musk had directly discussed joining Twitter's board with them, and that the board had offered him a seat, but that he pulled out at the last minute on the day he was to be officially appointed.
"We were excited to collaborate [with Musk] and clear about the risks," said Agrawal. "We also believed that having Elon as a fiduciary of the company where he, like all board members, has to act in the best interests of the company and all our shareholders, was the best path forward."
Legally, a fiduciary is someone entrusted to act on behalf of someone else, and who must put that person's best interests ahead of their own.
"We announced on Tuesday that Elon would be appointed to the Board contingent on a background check and formal acceptance," Agrawal continued. "Elon's appointment to the board was to become officially effective 4/9, but Elon shared that same morning that he will no longer be joining the board."
Though Agrawal did not provide a reason why Musk backed down, and Musk has not commented publicly, it's reasonable to speculate that the restrictions placed on Twitter's board members may have been a contributing factor.
Musk recently purchased a 9.2 percent stake in Twitter, sending its shares skyrocketing up 27 percent. However, as a board member, Musk would have been prohibited from acquiring a stake in Twitter larger than 14.9 percent until his term ended in 2024. That may have been a nuisance for Musk's investment plans, and would also cut off the possibility of large future purchases which could boost Twitter's share price further.
In any case, despite how much work apparently went into Twitter's discussions with Musk, Agrawal doesn't seem too broken up about it all falling through.
"I believe this is for the best," he said. "We have and will always value input from our shareholders whether they are on our Board or not. Elon is our biggest shareholder and we will remain open to his input."
Musk hasn't been shy about offering his input on the bird app either, publicly musing about the possibility of adding features such as an edit button or authentication checkmarks for people who subscribe to Twitter Blue. Twitter is working on adding an edit button, but notes that it was in the works long before Musk just tweeted it out.
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This leaves the option for him to buy even more shares, thus taking over even more of the company. If he was on the board, he would only be allowed to own like a 24% share, now, the sky is the limit!
ReplyDeletedoing that, he might be able to change the board of directors?
Deleteat 51%...you are in complete control of the company
Deletehe’ll just make his own social media app.
ReplyDeleteand it will fail.
DeleteOr buy the rest of Twitter?
Deletehe only bought Twitter shares so he could post whatever he wants on it haa
DeleteYeah... Sure wouldn't want the me, me, me narrative disrupted... as all the libs breath a collective sigh of relief.
ReplyDeletewhat?
DeleteTwitter thought it could limit Elon Musk's control of stock and silence what he discovers about the company. Bad move on their part. The curtain is opening.
ReplyDeleteIt's because joining the board would limit how much of the company he can own. If you were someone who was worried about him having influence over how things are ran, this should worry you more
ReplyDeleteOk time to sell your shares if you already gained..he already made money from stocks he bought
ReplyDeletedefinitely dipping when the market opens today.
Deletejust like what he did in bitcoin
DeleteExactly. And with his poll on Twitter, regarding selling his shares
DeleteMusk didn't buy Twitter to pump and dump. Not on the board officially but he will still influence
ReplyDeleteReady for the hostile take over? Elon is.
ReplyDeleteHe would have made the cut only if he hadent made so much noise abought it
ReplyDeleteSome more queer inclusion would've been interesting.
ReplyDeletetwitter isn’t queer friendly enough?
Deletei’m gay. This is a genuine question. How are LBGT rights not represented or defended appropriately enough on twitter?
Deleteyou strike me as properly racist. How does my ethnicity have anything to do with this? I feel like twitter is the most inclusive social media out there. My question is legitimate, how should and could twitter improve it’s inclusivity.
DeletePlease do not tell me to do my own research, I’d like to know your point of view because you obviously seem to have an opinion on the subject.
please respect my boundaries!
Deletewhat boundaries? You publicly stated you want twitter to do more for inclusion, yet you do not want to outline what steps you believe should be taken, and you ostracize me as being a lazy gaslighting white male.
DeleteYou strike me as being the lazy one publicly gaslighting and bullying others that question (and not argue) your claim by stating their race and background discredits them from having an opinion.
I’m rather intrigued by your interpretation of inclusiveness, seeing as I identify as one of your “tribe”
stupid is as stupid does for every skin color...all you have done here is complain about something without an explanation and be racist...lol. Social Media isn't racist...I wouldn't know your ethnicity if it wasn't for you talking about it...I respond to the words people write...how more inclusive can you get?
Deleteyou think social media is racist...I reported your comment...and I am betting it won't be removed...however...it would definitely be removed if the race was reversed.
Deleteit takes hours to be processed...lol...we will see...maybe some others can report it too.
Deleteget a load of this...report the comments as hate speech
DeleteI guess Elon as stolen trashy Mashable's lunch before... What a clown of a publication
ReplyDeleteThank goodness
ReplyDeletehe sells his stock Twitter is going to lose one hell of alot of money. Thank goodness.
DeleteWho cares
ReplyDeleteA Board member is restricted to 14.9 % stock ownership. TWITTER Is slowly going bankrupt . Today it's net worth 13 billion . He is waiting for it to tank and by it for 7 billion
ReplyDeletenot very good at math are you. He bought a 9% stake at 2.89 billion. How about you brain that out and admit you pulled the "13 billion" from your chud hole
DeleteTwitter net worth reported this morning 13 billion
Deletehttps://www.gobankingrates.com/money/business/how-much-is-twitter-worth/
Deleteand... over a month ago. When a stock goes up, like when someone buys 9% the price goes up. Twitter's net worth is about ~$36bil USD. For him to pull off a takeover would make the price go up even more. Since unlike you claim it's not failing.
Deletewhat is the PE ratio of the market cap . How does the compare to last quarter . Net Worth has. Nothing to do with Stock price . The best thing that could happen is for Musk to own 51 % for the company to survive.
Deleteread the link I posted.
Deletelet me Google that for you. BTW it's 4/11, not 2/22. Some things have happened.
DeleteAnd pretending that a social media company that depends on ad revenue, is struggling 2 years after record amounts were spent on 2020 election, before ad spending ramps up for 2022 is pretty disingenuous. Especially considering new user accounts haven't fallen. My clients that regularly sell 6 digit ad buys as social influencers certainly aren't complaining.
it's not like we're pretending this is "Tooth" Social
Deletehttps://www.cnbc.com/2022/04/05/mkm-downgrades-twitter-after-huge-pop-on-musk-stake-warns-user-growth-still-an-issue.html
Deletemaybe you should buy 1000 share of Twitter .Let me know how that works out in Dec . When the stock hits $30
DeleteHe’s a douche
ReplyDelete