Thursday, September 29, 2022

Elon Musk reverses course, will not join Twitter’s board

SAN FRANCISCO ( Associated Press) — Twitter’s biggest investor, billionaire Elon Musk, is reversing course and will join the company’s board of directors less than a week after being awarded a seat.

Twitter CEO Parag Agarwal announced the news after a weekend of Musk tweets suggesting changes to Twitter, including making the site ad-free. About 90% of Twitter’s 2021 revenue came from ads.

However, several tweets posted by Musk over the weekend about possible changes to Twitter no longer appear on the platform.

Read more: SEC Claims Right To Summons Elon Musk Over Tweet

“Elon’s appointment to the board was to officially take effect on 4/9, but Elon shared the same morning that he would not be joining the board,” Agarwal wrote in a reposted note originally sent to Tesla employees. “I believe it is for the best.”

Agarwal did not provide any explanation for Musk’s apparent decision. He said the board understands the risks of having Musk, who is now the company’s largest shareholder, as a member. But, “It is recognized that Elon is treated as a subsidiary of the Company, where he, like all board members, has to act in the best interest of the Company and all of our shareholders, the best path forward.” was,” he wrote.

The rapidly developing relationship between Musk and Twitter began just a week ago when regulatory filings revealed the business billionaire acquired a 9.2% stake in the social media platform, making him its largest shareholder.

According to a regulatory filing, Twitter gave Musk a seat on the board on the condition that he owns no more than 14.9% of the company’s outstanding stock.

While Musk has been one of Twitter’s biggest critics, the sudden withdrawal from the board, which became official on Saturday, could signal that the rapidly evolving narrative between Musk and Twitter will become more acrimonious.

“It now goes by a Cinderella story in which Musk joins the Twitter board and keeps his stake below 14.9% to help Twitter strategically move forward in a “Game of Thrones” fight between Musk and Twitter. more likely, with Elon taking a more hostile stance toward Twitter and building up his active stake in the company,” wrote Daniel Ives, who follows Twitter for Wedbush.

According to Ives, this could mean that Musk will join forces with another major investor for a “strategic change on Twitter,” or he’ll be forced to move the company in a new direction by harassing board members and executives. will try to do.

In a letter to employees, Agarwal wrote that “there will be distractions ahead, but our goals and priorities remain unchanged.”

Shares of Twitter Inc., which jumped nearly 30% last week after Musk’s stake went public, fell nearly 2% at the opening bell on Monday.

Musk posted some cryptic tweets late Sunday, which featured a meme saying, “In all fairness, your honor, my client was in ghost mode,” followed by one that “explains everything.” Another, later tweet, was of a hand-over-mouth emoji.

He now holds a 9.2% stake in Twitter, raising questions about how he might try to turn the social media platform into Twitter’s largest shareholder.

Musk’s 80.5 million Twitter followers make him one of the most popular figures on the platform, rivaling pop stars like Ariana Grande and Lady Gaga. But his exuberant tweets have sometimes landed him in trouble, such as when he has used it to boost his business ventures, rally Tesla loyalists, question the pandemic’s measures, and fight back.

In one famous example, Musk apologized to a British cave explorer who alleged that the Tesla CEO angrily branded him a pedophile by referring to him as a “pedo man” and later deleted the tweet. Finder filed a defamation suit, although a Los Angeles jury later acquitted Musk.

He is also locked in a long-running dispute with the US Securities and Exchange Commission over his Twitter activity. Musk and Tesla agreed to pay $40 million in civil fines in 2018 and Musk had his tweet approved by a corporate attorney after he spoke about having the money to take Tesla private at $420 per share. tweeted. This did not happen but the tweet caused a jump in the share price of Tesla. His lawyer has argued that the SEC is infringing on Musk’s free speech rights.

Read more: Why Elon Musk’s tweets matter to the SEC

Musk has described himself as a “free speech autocrat” and said he doesn’t think Twitter is living up to free speech principles – an opinion shared by Donald Trump’s followers and many right-wing political figures, whose Accounts are suspended for violating Twitter content rules.

But what exactly is driving Musk’s Twitter involvement is unclear. Other engagements with the service include the rationale for making Twitter’s algorithm viewable by the public, increasing the availability of “verified” Twitter accounts, and a profile photo initiative involving non-fungible tokens, or NFTs.

Musk also calls “crypto spam bots” who search tweets for cryptocurrency-related keywords, then empty users posing as customer support for crypto wallets, “the most annoying problem on Twitter.”

Twitter’s CEO and other board members praised Musk, suggesting that they may take his ideas seriously.

Agarwal’s initial actions since taking over from co-founder Jack Dorsey in November have included restructuring divisions without major changes. The company has long lagged behind its social media rivals and claims to have very few users.

Nation World News Desk
Nation World News Deskhttps://nationworldnews.com
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