Parag Agrawal announced late Sunday that Elon Musk will not join the Twitter board.
Elon did not agree to be a member of our board. I wrote a short note to Elon, and shared it with you. pic.twitter.com/lfrXACavvk
— Parag Agrawal (@paraga) April 11, 2022
This followed Elon Musk proposing a variety of changes to Twitter, including the humorous one of turning the headquarters into a homeless shelter since employees were no longer required to go there to work and could work remotely forever.
Although he won’t be on the board, he’ll still be the largest shareholder and exert influence.
Musk deleted and posted a smiley emoji with his hand on his face.
Elon Musk deleted this cryptic tweet after it was announced he won’t be joining Twitter’s board of directors… pic.twitter.com/kmag7cprMp
— Joseph A. Wulfsohn (@JosephWulfsohn) April 11, 2022
Was this Musk’s greatest troll or was there more to it? Or a way to pump up Twitter’s stock?
Daily Mail
Twitter stock dropped 8 percent Monday morning in pre-market trade, and traded at $43 per share. CNBC reported.
The drop was slightly less than Friday’s closing, but it recovered somewhat and stood at $45.20 per Share by 7.30 AM ET. This is a 2.23 percent decrease.
News of Musk’s involvement in the company has caused Twitter stock prices to skyrocket over the last week, reaching a high of $53.84 per share on April 5.
Oder, as others suggest: Musk is on the verge of more in Twitter’s direction?
Twitter offered him to join the board. This was in essence a deal to make him more controlled. He would be restricted in several ways if he was on the board. He would not have been able to own more than 14.9 % of the shares, if he had been on the board. He would also have been required to follow the best interests and the company’s policies, which could have stopped him from posting more controversial things on Twitter. If you read Agrawal’s message, you can see how they were trying to keep him with a fiduciary duty. He would have been restricted in what he could have said and done — which is not Musk.
The board member is not required to accept the deal, but he can still buy additional Twitter shares and, in effect, force a hostile acquisition if he chooses.
Twitter employees, who previously cried about his involvement, are even more angry and afraid of what lies ahead.
So we’ll have to see what’s coming next. But given his interest and the money he’s already put in to have influence in the company, it would stand to reason that he’s trying to free himself from any restrictions so he can act as he wants. So grab the popcorn, it may be a hostile takeover, we’ll have to wait and see.
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