Elon Musk has officially purchased Twitter for $44 billion, with Jack Dorsey, the social media giant’s creator, pledging his support to the Tesla co-founder. Musk has long stated that he “loves” Twitter, and when an earlier journalist suggested that he acquire it in 2017, Musk responded with, “How much is it?” implying that Musk has been considering purchasing Twitter for some time. Given that Twitter is a publicly-traded corporation, the firm’s stock is held by millions of ordinary investors. With Elon Musk’s acquisition of Twitter and his proposal to take the firm private, you are probably wondering what will happen to your Twitter stock.
But, why was Elon not joining Twitter?
We saw the headlines in the social media news saying that Elon Musk will no longer be a member of Twitter’s board of directors, according to Parag Agrawal, the social media company’s CEO. This came less than a week after he was offered a seat on Twitter’s board of directors after becoming the company’s largest shareholder.
Tesla CEO Elon Musk bought a 9.1% stake in Twitter on April 4th. Following that, the corporation declared that he would be appointed to the 12-member board of directors, subject to a background check and formal approval. On Saturday, April 9, the position, which was not a top-tier one, would have become official. Musk informed Twitter that he would not be receiving it that morning. He didn’t give any details about why he changed his mind which seems bizarre.
Musk shares On Twitter are no longer limited So Tesla CEOs are Now Free to Criticize the Platform
As per Musk’s Agreement, his position in Twitter would have been limited to 14.9 percent or less of common stock during his stay on the board of directors, and for 90 days afterwards. Musk has previously been critical of the platform, and the position comes with a fiduciary duty to act in the best interests of the company and its shareholders. Musk is no longer bound by either of these standards by refusing the seat. “Elon is our biggest shareholder and we remain open to his feedback,” Agrawal wrote in a note to the company”.
What does this mean for Twitter’s future?
Musk no longer has a limit on how many shares he may own, allowing for a hostile takeover. As the world’s richest man, he has the financial means to purchase any stock that comes up for sale. Twitter’s stock price has been volatile in the aftermath of these announcements, jumping by as much as 30% following news of Musk’s acquisition, then falling by another 10% when his appointment to the board was disclosed. Following the announcement of his reversal, shares fell as much as 4% in pre-market trade on Monday before recovering marginally. The consequences of Musk’s actions, according to Agrawal’s statement, could generate disruptions within the company, but he stressed that the company’s aims and priorities remain unaltered.
Mr Musk isn’t the first person to start many businesses. Apple and Pixar were both co-founded by Steve Jobs. Jack Dorsey was the founder and CEO of both Twitter and Block. Running five firms, on the other hand, necessitates entrusting others with properly running the company on your behalf. And experts say that goes against Mr Musk’s personality as a self-described “nano-manager.” He stated last year that he did not want to be the CEO of Tesla. When experts from various social media marketing agencies enquired as to why he stated that he did not want to be the chief executive of anything.
That may or may not be the case. He does, however, want to be involved in the day-to-day operations of these businesses. Mr Musk was working at Space X when the Twitter offer was accepted, according to his biographer Walter Isaacson. He went to a 10 p.m. meeting discussing engine design that night. Further, his biographer states on social media news that he worked on valve leak remedies for over an hour. No one brought up Twitter. He’s capable of multitasking. Mr Musk’s ability to multitask is undeniable. Will he, however, be able to spin so many plates at once without them all collapsing?
Keep an eye out for any correspondence from social media news in this regard.