Mere days after becoming Twitter’s biggest stockholder, Elon Musk has been welcomed onto the social media company’s board of directors.
Well…that didn’t take long.
Just yesterday, it was announced that Tesla CEO Elon Musk had bought a 9.2% stake in Twitter, making him the social media platform’s largest individual shareholder (and if you didn’t catch that update, no worries. You can read it here.)
There was wild speculation about the Musk Man’s next move. Would he go from a passive investor to an activist investor? Would he still follow through on his musings about creating his own rival social media platform? Would he take over the company by continuing to buy shares?
Well, as of now, any potential plot to take over Twitter seems to be on hold…if it happens at all.
Because now Musk might not even have to do that.
On Tuesday morning, Twitter executives announced that they were naming Elon Musk to their board of directors.
I suppose if you can’t beat them, join them, as they say.
Twitter CEO Parag Agrawal broke the news first, tweeting, “Through conversations with Elon in recent weeks, it became clear to us that he would bring great value to our Board.”
I’m excited to share that we’re appointing @elonmusk to our board! Through conversations with Elon in recent weeks, it became clear to us that he would bring great value to our Board.
— Parag Agrawal (@paraga) April 5, 2022
Agrawal added, “He’s both a passionate believer and intense critic of the service which is exactly what we need on Twitter, and in the boardroom, to make us stronger in the long-term. Welcome, Elon!”
He’s both a passionate believer and intense critic of the service which is exactly what we need on @Twitter, and in the boardroom, to make us stronger in the long-term. Welcome Elon!
— Parag Agrawal (@paraga) April 5, 2022
Twitter founder, former CEO, and resident hippie Jack Dorsey praised the Board’s decision, tweeting that Musk “cares deeply about our world and Twitter’s role in it.”
I’m really happy Elon is joining the Twitter board! He cares deeply about our world and Twitter’s role in it.
Parag and Elon both lead with their hearts, and they will be an incredible team. https://t.co/T4rWEJFAes
— jack⚡️ (@jack) April 5, 2022
Is it just me, or does it seem like the bigwigs over at the Tweedledum company are acting just a tad bit too friendly to Mr. Musk?
It’s almost as if they are playing 4D chess trying to assuage Musk’s ego so he doesn’t go forward with an internal takeover plan.
Maybe that is just the cynical side in me…but according to social media, I’m not the only one thinking that way…
However, that might be exactly what is happening given a report from CNBC in which the financial network reported, “Musk’s term is set to expire in 2024, according to a filing with the SEC. For his entire board term or 90 days after, Musk cannot be the beneficial owner of more than 14.9% of the company’s common stock outstanding.”
Ah, now it all makes sense.
By naming Musk to the board Twitter capped how many shares he could buy at 14.9%, thus making it impossible for him to become a majority stakeholder in the company.
Smart. Smart indeed.
This latest bombshell news follows on the heels of Monday’s news that Musk had bought a large stake in Twitter.
I know, an Elon Musk news cycle is hard to keep up with. It moves faster than one of his SpaceX rockets.
A Securities and Exchange Commission filing confirmed that Musk had taken a 9.2% stake in the company worth $2.89 billion which makes him the platform’s largest individual shareholder.
And investors reacted positively to the news, sending shares of Twitter surging on Monday as high as 26%, which is the biggest intraday increase for Twitter in more than four years.
Elon Musk might be leveraging his shareholder position to ensure that Twitter does a better job adhering to free speech principles, a subject about which he feels strongly.
Or he might have a more diabolical takeover plan that we don’t know about yet (my dark side hopes that’s true because it would give me more juicy material to write about).
We might not know what old Elon is up to for a while given his history of cryptic tweets. But for now, we can say welcome to the Twitter Board, Mr. Musk!