Late Sunday, it was announced by Parag Agrawal that Elon Musk would not be joining the board of Twitter.
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
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.
While he will not be on the board he still will be the biggest shareholder and have influence in that way.
Musk posted and deleted a smiling emoji, with his hand over 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
So was this all just the biggest troll by Musk? Or a way to pump up Twitter’s stock?
Twitter stock briefly dropped 8 percent in premarket trade Monday, trading at less than $43 per share, CNBC reported.
However, the drop recovered slightly and by 7.30 am ET was at $45.20 per share, an only 2.23 percent decline from closing on Friday.
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.
Or as some suggest, is more on the way from Musk in regard to Twitter?
The offer by Twitter to have him on the board was, in effect, a way to control him in a deal. Being on the board would have restricted him in a couple of ways. It would have prevented him from owning more than 14.9 percent of the shares if he was on the board. Moreover, being on the board would have required him to be obligated to what was in the best interests of the company, which might have prevented him from doing more radical things to Twitter that he might want to do. 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.
By not taking that deal and being on the board, he is free to buy more of Twitter and essentially effect a hostile takeover, if he were to choose to do so.
Some of the Twitter employees who had melted down before about his involvement are now even more upset, afraid this is what is coming next.
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.