After making close to $1 billion through the news of joining Twitter’s board, Elon Musk chickens out. Was this another of Musk’s trick to leverage social media to make monetary gains?
Highlights —
- Twitter CEO broke the news of Elon Musk joining company’s board of directors
- Tesla CEO uploads a poll for edit button on Twitter after officially becoming the largest shareholder of the company
- Ahead of effective date, CEO of Twitter Parag Agrawal announces Musk no longer wants to join the board.
- Twitter’s shares spiked approx 35% since the news came out
- Musk already added $980 million to his net worth after announcing his stint with Twitter.
Elon Musk announced that he is joining Twitter’s board of directors and honestly, it felt like a homecoming. The social media platform has been a playing field for the Tesla CEO for years now. It’s high time that he finally jumps into running the show.
However, ahead of the effective day, Tesla chief has chickened out- sounds like quintessential Musk!
With 9.27% stakes in the social media giant as disclosed by Musk, Tuesday recorded a staggering 27% spike in Twitter’s share prices.
According to the SEC filing, Musk’s stakes in the company will be limited to 14.9%.
The CEO of Twitter, Parag Agrawal broke the news to the internet by quoting- “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. 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!”
However, not even a week into the news, Agrawal had to break another news before the internet- Musk is not joining the company’s board. Musk has already make billions through his shareholding.
What are Elon Musk’s agendas with Twitter?
Replying to CEO Parag Agrawal through a tweet, Musk quoted, “looking forward to working with Parag & Twitter board to make significant improvements to Twitter in coming months!”
So what is on the list of the billionaire’s agenda?
Known for his outspoken stints on Twitter, Elon Musk is largely expected to take free-speech a notch higher at the platform.
According to a research note by Truist Securities, “[w]e believe a primary driver of this investment is Mr. Musk’s desire to reshape the platform and make it more open-source with fewer intermediary controls.”
“Considering what a small investment this is for him (~1% of net worth), we would not be surprised to see him increase his stake even further, and potentially assume a more active role in the decision-making at the company.”
The Musk Touch Soars Twitter Stocks to Sky
Ever since Twitter went public in 2013, the stocks of the company have only spiked by 11%. The number is highly disappointing compared to its rivals like Facebook and Snapchat.
However, after the news of Elon Musk joining Twitter broke out, the company’s stocks have gained 35%.
It has not even been 24 hours since the news came out and Tesla chief has already added $980 million to his fortune. Thanks to the positive market sentiments on Musk joining Twitter. With 9.2% stakes in the company, Musk is now the biggest shareholder of Twitter. The second largest shareholder of Twitter is Vanguard Group (8.8%), followed by Morgan Stanley (8.4%).
The position of Tesla CEO in the board of directors of the company is locked until the next annual shareholder’s meeting in 2024.
The post Elon Musk Ditches Twitter — Flaky or Did He Dupe The Company To Make Billions appeared first on DKODING.
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