A surprising announcement from Twitter CEO Parag Agrawal may soon rekindle the interests of those hoping for a major shakeup at the social media giant as late Sunday it was reported that billionaire entrepreneur Elon Musk “has decided not to join” the board.
After acquiring a 9.2 percent stake in the company, the process had begun for the company’s largest shareholder to accept a seat on the board of directors. Publicly, Twitter boasted their excitement about the new arrangement.
However, behind the scenes, work was being done to limit Musk’s reach. It was reported that the terms of joining the board included an investment cap barring the billionaire from owning more than 14.9 percent of company stock. Many believe that handicap is the reason behind the decision Agrawal posted Sunday.
Elon has decided not to join our board. I sent a brief note to the company, sharing with you all here. pic.twitter.com/lfrXACavvk
— Parag Agrawal (@paraga) April 11, 2022
“Team, Elon Musk has decided not to join our board. Here’s what I can share about what happened,” Agrawal wrote. “The Board and I had many discussions about Elon joining the board, and with Elon directly. We were excited to collaborate and clear about the risks,” like limits to his investment opportunities.
Citing the best interests of the company, Agrawal went on, “We announced on Tuesday that Elon would be appointed to the Board contingent on a background check and formal acceptance. 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.”
“I believe this is for the best. 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,” he concluded.
Speculation swirled that the numerous proposals that Musk had openly discussed like turning Twitter’s San Francisco headquarters into a homeless shelter and creating an “edit” feature on the platform were already causing derision. The biggest concern seemed to come from employees at the company who were worried about Musk’s push for free speech and an end to censorship.
Maybe he finally learned the difference between the 1st Ammendment and Terms of Service?
— Hi! It’s Mike C (Again, again) (@TheUnrealMikeC) April 11, 2022
Though no statements have been released by Musk pertaining to the matter yet, a since-deleted tweet was offered by the investor with a smiling emoji that had a hand over its mouth. The Daily Mail reported it to indicate “an expression of rapture, a smirk, a shy smile, or indicating happiness.”
Elon joining Twitter's board was contingent on him agreeing not to buy more than 15% of Twitter. Now he's not joining the board. So does that mean he can he buy as much of Twitter's outstanding stock as he wants?
— Peter Sterne (@petersterne) April 11, 2022
The increased share price on Musk’s 9.2 percent holdings gave an earnings value of around $1 billion. While the anticipation is he backed out of a board seat to be able to invest further into the social media company, the market reaction to the news may indicate the next steps he will take.
In answer to New York Focus Managing Editor Peter Sterne’s query, Musk should be able to purchase “as much of Twitter’s outstanding stock as he wants,” and driving the value up with big moves may have been his objective all along. As for the long run, many predict he may be heading toward a hostile takeover.
He may do a hostile takeover now.
His prior agreement limited him to 14.9 percent ownership
— Zackery Parker🦄 (@mistman78) April 11, 2022
doesnt this just put him in the clear to fully take us over
— elon musk is a racist demagogue with a god complex (@linguangst) April 11, 2022
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