Musk Says ‘No’ to Twitter Board, Hostile Takeover? Stocks Fall 7%

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Twitter CEO Parag Agrawal announced on the social media site Sunday night that Mr. Musk will not be joining the company’s board despite an invitation to join. Twitter shares fell about 7% in pre-market trading after the news came out. He ended his previous deal to buy no more than 14.9% of the stock.

Following discussions with management, Musk decided against joining Twitter’s board over the weekend.

BULLISH

Bloomberg pointed out that Musk could put up a hostile bid to the shareholders and possibly take over the company. The company’s shares went up a third when he became the largest shareholder.

Since he’s not a member of the board, he doesn’t have to worry about any conflicts of interest with his other companies, Bloomberg notes.

Deleted Tweets

On Monday, he deleted, without explanation, his tweet of a single emoji — a smiling face with a hand over its mouth.

It was a response to Twitter’s Chief Executive Officer Parag Agrawal’s announcement that Musk would not take up his board seat.

He deleted one more poll tweet about twitter headquarter and homeless shelter. The tweet was a poll asking: Convert Twitter SF HQ to homeless shelter since no one shows up anyway. In response, 91.5% said ‘yes’.

Businessman Nick Huber responded by repeating a story told by Carl Icahn about firing 12 floors of people and Musk joked back, “Exactly!”.

If he deleted it, Twitter obviously told him to play nice.

THE ANNOUNCEMENT

Mr. Musk told Twitter of his refusal Saturday, an arrogant Mr., Agrawal said.

“We were excited to collaborate and clear about the risks. We also believed that having Elon as a fiduciary of the company where he, like all board members, has to act in the best interests of the company and all our shareholders was the best path forward,” Mr. Agrawal wrote.

The comment “fiduciary duty” and “acting in the company’s best interests” would have limited Musk’s free speech.

Agrawal noted that Mr. Musk remains the company’s biggest stockholder, owing more than 9% of the company.

“We have and will always value input from our shareholders, whether they are on our Board or not,” Agrawal said. “Elon is our biggest shareholder and we will remain open to his input.”

Agrawal added that “there will be distractions ahead but our goals and priorities remain unchanged. The decisions we make and how we execute is in our hands, no one else’s. Let’s tune out the noise, and stay focused on our work, and what we’re building.”

Unfortunately, what they’re building is an anti-free speech enterprise.

At least they probably can’t suspend Elon Musk – we think.


THERE’ SOMETHING ELSE

Musk asked if Twitter is dying since the people with the most followers rarely used the platform.


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Dawn
Dawn
1 month ago

Is Elon going to buy 51% of the stock to take over Twitter? Will it ever be a free speech platform again? Hard to tell with Elon. He always keeps his thoughts close to his chest before the big reveal! I got kicked off Twitter last Jan 6th, 2021, but never was told for what. Maybe because I had an American Flag and Eagle as my icon? You can never get a straight answer, if any, from Twitter. It would have to have big changes for people to come back. Twitter has been swirling and going down the toilet for quite a while now. Will they make it back? Who knows.

a a ron
a a ron
1 month ago
Reply to  Dawn

If he was smart, let them tantrum and drive the price of the stock into the toilet. Their mass exodus saves him having to fire them. When prices are low, buy it up, take over the company, put competent people in and run it properly. No sense re inventing that wheel, when it’s already built. It just needs to be re balanced and then ran…