Tesla Chief – Elon Musk has recently turned down an offer from the Twitter board, a month after becoming its highest shareholder.
Following the 73.5 million shares of Twitter stock acquired by Elon Musk on March 14, which is approximately 9.2% of the total stake, On April 5, Elon Musk and Twitter announced he would be joining Twitter’s board. This was a day after the Tesla CEO disclosed via financial filings that he’s the biggest shareholder of the micro-blogging platform.
Twitter offered Mr. Musk a seat among the board of directors, an offer which he, to the surprise of everyone, turned downed the same day it was supposed to be announced.
Twitter CEO, Parag Agrawal disclosed this in a tweet on Sunday, April 11 but however, he announced publicly that the Tesla Chief remains the largest shareholder of Twitter, and the company will remain open to his input.
Elon has decided not to join our board. I sent a brief note to the company, sharing with you all here. pic.twitter.com/lfrXACavvk
— Parag Agrawal (@paraga) April 11, 2022
According to Agrawal, Elon Musk’s appointment would have been effective, Saturday, April 10, “contingent on a background check and formal acceptance,” but Mr Musk informed Twitter on Saturday morning of his decision to decline the offer.
Understand that a financial filing from Twitter specified that as long as Musk served on its board, he would be limited to owning no more than a 14.9% stake in the company’s common stock outstanding, including through derivative securities, swaps, or hedging transactions.
Now, we can see that theoretically, Elon Musk could increase his 9.2% stake beyond that limit, having turned down a seat at the board.
Over the weekend, Elon Musk dropped a number of tweets, suggesting ideas that could help transform the micro-blogging platform.
A striking one was he suggested that Twitter Blue subscribers pay with dogecoin, to get an “authentication” checkmark and keep Twitter Blue free of advertisements.
“Everyone who signs up for Twitter Blue (ie pays $3/month) should get an authentication checkmark,” “And no ads. The power of corporations to dictate policy is greatly enhanced if Twitter depends on advertising money to survive.” Musk tweeted.
He also made very funny suggestions that many would view as jokes;
- where he used the poll function to ask people to give their opinions on whether Twitter should drop the “w” in its name, so it would become “Titter” instead.
- He also suggested that Twitter turn its headquarters office in San Francisco into a shelter for the homeless, saying that no one shows up there again.
Amazon founder – Jeff Bezos in reply to one of Elon’s suggestions in support, saying that Twitter could turn part of its headquarter office into a shelter, “Worked out great and makes it easy for employees who want to volunteer,” he said.