Incredible twist in the story between Elon Musk e Twitter. As announced yesterday by CEO Parag Agrawal, the well-known entrepreneur – as well as the largest shareholder of the social media platform – will not be part of the Council of Directors of the company. A major announcement, which represents a sharp turnaround from Twitter’s strategy, which said it would welcome Musk just last week. What has changed in these days? Let’s try to find out together.
Elon Musk and Twitter: the entrepreneur will not enter the Board of Directors
Bolt from the blue in the matter between Twitter and Elon Musk. Just yesterday, in fact, the CEO Agrawal announced that the entrepreneur who owns Tesla will not join the Board of Directors. An announcement that comes after a series of unusual tweets shared by Musk’s account, who publicly asked his followers if Twitter was “dying,” citing the low frequency of sharing by some of the platform’s most influential personalities. And as if that weren’t enough, the entrepreneur also publicly asked if Twitter should convert its San Francisco office into a homeless shelter. A question that has aroused quite a few reactions on the platform, including that of Jeff Bezos.
As much as Elon Musk has accustomed us to somewhat unusual tweets, there is no doubt that this time around he has managed to outdo himself. Sure, the entrepreneur might just want to come up with a number of useful improvements for Twitter, but maybe he didn’t do it quite right. Therefore, it seemed obvious to everyone that Tesla’s CEO had already decided not to serve on the company’s board of directors. Agrawal’s announcement, therefore, was only confirmation: “On Tuesday we announced that Elon would be appointed to the Board, subject to a background check and formal acceptance. Elon’s appointment to the Council was to officially become effective on 9/4, but Elon shared that same morning that he will no longer join the Council “.
“We have and will always evaluate the contribution of our shareholders, regardless of whether they are on our board or not. Elon is our largest shareholder and we will remain open to his contribution, ”Agrawal concluded his announcement, confirming that Musk will not be part of the management of the platform. In response, the entrepreneur limited himself to sharing a tweet with an emoji which indiscriminately expresses his state of surprise and shock. But what will happen now? Will Elon Musk remain a Twitter shareholder without being able to decide anything about the platform’s future?
What will the future of Twitter be?
“I am very happy that Elon is joining the Twitter Council! She cares deeply about our world and Twitter’s role in it. ” Like this Jack Dorsey, co-founder and former CEO of the company, commented on the well-known entrepreneur’s entry into the platform. Adding: “Parag and Elon both work from the heart and will be an incredible team”. Apparently, however, Dorsey has not yet made any comment on Musk’s departure from the Council even before joining. In any case, there is no doubt that Tesla’s CEO is the largest shareholder of Twitter, having acquired 9.2% of the shares of society. A move he made increase the value of the shares by 30% was already a few hours after the announcement of the acquisition.
The Twitter board previously believed it was for the best if Elon joined. Now they believe it’s for the best that he withdrew.
So it’s the Twitter board that changed their minds, not Elon? Is this why they mention the background check (which would normally be a trivial detail)? https://t.co/G27T6FQc2p
— Francois Chollet (@fchollet) April 11, 2022
Sadly, though, Elon Musk will just be a Twitter shareholder, without actually joining its Board of Directors. “The board and I had a lot of discussions about Elon’s entry, and also with Elon directly,” said CEO Agrawal. “We were thrilled to collaborate and clarify the risks. We also believed that having Elon as a trustee of the company in which he, like all board members, must act in the best interest of the company and all of our shareholders was the best path to follow. ” Yet, a few hours later, the announcement of the company’s turnaround arrives. Musk will not be on the Board, which currently has 11 members, including Jack Dorsey, Parag Agrawal, Bret Taylor (co-CEO of Salesforce) ed Stay in Durban.
Yet, on the company’s official website, Elon Musk still appears as a member of the Board, with the role of investor relations. At this point, one would think that the decision may have been sudden, and above all connected to something very specific. Sure, the Washington Post said some time ago that Twitter employees were very worried about Musk’s entry to the board. Apparently, however, Agrawal had tried to calm the mood by announcing that the new shareholder would arrange a meeting with them. An appointment that perhaps will never materialize, given that Elon Musk will not be on the Twitter Board. At least for now.