Taken in Krakow, Poland on April 9, 2022, this illustrated photo shows Elon Musk’s Twitter profile on the computer screen and the Twitter logo on the phone screen.
Jakub Porzycki | Nurphoto | Getty Images
twitter Shares fell in pre-market trading on Monday after CEO Parag Agrawal revealed: Elon Musk abandoned his plan Join the company’s board of directors.
Shares of social media companies temporarily exceeded 8% at 4 am ET and fell to less than $ 43 per share before a slight recovery. Stock prices at 8:00 am (Eastern Standard Time) fell 2.66% to $ 45.
April 5th, Musk and Twitter he Join the Twitter board.. The day before Tesla Through financial filing, SpaceX CEO revealed that it is Twitter’s largest shareholder and holds a 9.2% stake in the company.
Musk would have been appointed to Twitter’s board on Saturday, but the wealthiest man in the world informed the company that day he wouldn’t actually sit on board. Twitter’s investor public relations page hasn’t been updated yet, and Musk continues to be listed as a member of the board.
“Eron has decided not to join our board,” Agrawal wrote on Twitter on Sunday. “I sent a brief note to the company and shared it with you here.”
In a memo, Agrawal said Musk remains the largest shareholder on Twitter and the company will continue to accept his opinion.
“We were excited to work together to clarify the risks,” he writes. “Also, having Earon as a fiduciary of the company, like all board members, must act in the best interests of the company and is the best way for all shareholders to move forward. I believed there was. “
Twitter’s CEO didn’t say whether Musk gave him a specific reason to change his mind about accepting new obligations, or whether it was Musk’s decision entirely.
Had Musk joined the board, he would not have been able to acquire more than 14.9% of the company’s shares. He is no longer on the board, so he can theoretically increase his stakes if needed. Some industry experts speculate on Twitter He may now take over the company and try to rebuild it the way he wants.
Event timeline
Twitter’s share price soared 4% on Tuesday following a board announcement.
On Monday, after the Musk stock was first revealed, Twitter good day It has skyrocketed by more than 27% since the company’s IPO in 2013.
Throughout the weekend, Musk posted many ideas for transforming social media companies and their products, without revealing on Twitter that he had declined to sit on the board.
One of the suggestions was a rough joke in the form of a Twitter poll. Musk asked people to vote on whether Twitter should remove the “w” from its name. By doing so, Twitter turns into a “titter”, hinting at the anatomy of a woman.
A more serious proposal from Musk included allowing Twitter Blue Subscribers pay with Dogecoin, Get the “Authentication” checkmark to prevent ads from appearing on Twitter Blue.
“Everyone who signs up for Twitter Blue (that is, pays $ 3 a month) needs to get a certification checkmark,” Musk wrote. “And there are no ads. If Twitter relies on advertising costs to survive, the power of policy-making companies will be greatly enhanced.”
Musk also suggested that Twitter should turn its headquarters in San Francisco into a homeless shelter. “Because no one appears anyway.”
He also suggested that Twitter’s user base was bloated by bots and asked if Twitter was dying at some point.
— — Additional report by Lora Kolodny.
