APRIL 11 (Reuters) – Elon Musk rejected Twitter’s announcement (TWTR.N) He offered to join its board of directors, a surprising turnaround even as he suggested ideas in a barrage of tweets that range from removing ads to dropping the letter “w” in the social media company’s name.
In a note posted to the site on Sunday, Twitter CEO Paraj Agrawal said the board had several discussions with Musk, while warning of “distractors going forward.” However, he did not disclose the reason for Tesla (TSLA.O) The president refused.
The latest surprise sparked talk of everything from the possibility of a takeover to his moves to avoid further attention from the US Securities and Exchange Commission.
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Musk was expected to join the board of directors on April 9 after disclosing his 9.1% stake in Twitter, but the role would have limited his stake to 14.9%.
Sources told Reuters that Musk had asked Twitter for a board seat even before the company was invited.
With the rejection, Musk, now the company’s largest shareholder, was free to raise his stake above that limit.
“I think this is the best,” Agrawal said in the note. “There will be distractions in the future, but our goals and priorities remain unchanged.” (https://bit.ly/3usFqhe)
Musk, whose net worth is estimated at $274 billion by Forbes, only responded with a face-to-face emoji on Twitter.
Musk apparently deleted the tweet and a number of others over the weekend, including his musings about removing ads and the authentication checkmark for Twitter subscribers who pay $3 a month.
Musk, who calls himself an absolute free-lancer and criticizes Twitter, revealed the stake on April 4 and said he plans to make major improvements to the social media platform. Read more
The news sparked widespread speculation about his intentions, from taking full control of the platform to taking an active role in corporate decisions.
CFRA Research Analyst Angelo Zino wrote in a client note that Musk’s latest decision opens up the possibility for him to take a larger position and possibly make an overall bid.
“We thought the stock cap and board seat were originally intended to tie Musk’s hands in many ways, and we think it’s unlikely it will be the kind of individuals who will now sell his stake and walk away,” Zino added.
Company sources told Reuters that news of Musk taking a seat on the board of directors has caused some Twitter employees to panic about the future of the social media company’s ability to edit content. Read more
Before taking a stake, Musk conducted a Twitter poll asking users if they thought Twitter adheres to the principle of free speech.
A day after becoming the largest contributor, he launched another survey asking users if they wanted an edit button, a long-awaited feature that Twitter is working on. Read more
The Tesla boss also asked users in a poll whether Twitter headquarters should be converted into a homeless shelter, a plan backed by Amazon.com Inc’s (AMZN.O) Founder Jeff Bezos. Read more
On Saturday, Musk proposed changes to Twitter Blue’s premium subscription service, including lowering its price, blocking ads, and providing a payment option in the dogecoin cryptocurrency. Read more
“I think what he’s realizing is that by being on the board, his voice is going to be dampened and that’s definitely the last thing he wants,” Wells Fargo analyst Brian Fitzgerald said.
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Additional reporting by Abinaya Vijayaraghavan, Nivedita Balu and Gopi Babu in Bengaluru; Editing by Aaron Kuyer, Myung Kim, Edmund Kelman and Anil de Silva
Our criteria: Thomson Reuters Trust Principles.
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