|
|
Edited by Iravan774 at 22-12-2023 12:27 PM
Elon Musk has joined Twitter and is now the largest shareholder of the company with about 9.1% of Twitter's shares. However, he recently posted a tweet saying, "Board, schmoard. I don't want to be on the board. I'm just going to be holding Twitter stock, and I will be cheering them on."
Musk's filing states that he holds these shares as an investment and may acquire more or sell his current holdings in the company. His decision not to join Twitter's board marks a reversal and introduces new uncertainty into his relationship with the social media platform. Musk has not planned or intends to change his ownership in the company, but the filing notes that he reserves the right to change plans at any time based on his ongoing evaluation of numerous factors, including market and economic conditions, Twitter's business and financial condition, Musk's liquidity needs, the attractiveness of other investment opportunities, and other possible developments.
Twitter CEO Parag Agrawal did not explain the reasons for Musk's decision not to join the board. He said, "We will always listen to our shareholders, whether they are on our board or not. Musk is our largest shareholder, and we will continue to listen to his input." Former enforcement lawyers of the U.S. Securities and Exchange Commission stated that Musk's reversal is unusual but does not appear to violate any rules. Other experts have pointed out that Musk's public criticisms of Twitter would be difficult to reconcile with his fiduciary duty as a board director. The news of Musk gaining a board seat last week had Twitter employees concerned about the company's ability to review content in the future.
In fact, Musk's move has surprised many, and other Twitter shareholders are closely watching his actions. Musk's decision to not participate in the board avoids potential conflicts of interest, showing his astuteness in this regard. |
|
Post time 4-11-2023 16:56:54