Elon Musk’s Twitter tweetstorm fuels theories about board drama

Elon Musk’s sudden decision to decline Twitter’s board this weekend was in line with a bunch of tweet storms and provided clues to a dramatic reversal.

At 6:33 am on Saturday, Musk asked, “Is Twitter dying?” In the next 17 hours, Musk directed tweets to Twitter’s most popular users, San Francisco headquarters, and the account verification process. Before he completed, he made a lascivious joke about the company in which he is currently the largest shareholder.

The irregular string of Saturday’s tweets was also unusual for the CEO, who gained 80 million followers in a controversial 280-character post that led to proceedings and the Securities and Exchange Commission’s enforcement action.

But it’s the best evidence to help analyze what happened behind the scenes between his agreement to join Twitter’s board and his decision to decline on Saturday. The board of directors has been assigned to Musk, the company’s largest shareholder with a stake of over 9%.

“We always respect the opinions of our shareholders, whether or not they are on the board. Earon is our largest shareholder and we continue to accept his opinion. “Twitter CEO Parag Agrawal wrote in a post on Sunday night.

The decision to ask Musk to join the board hopes that Tesla’s CEO will support the relaxation of the company’s content policy, and perhaps even overturn the Twitter ban imposed on former President Donald Trump. It was foretold by the conservatives who were there. Meanwhile, Twitter employees expressed discomfort internally and were concerned that Musk could undo the progress it made in cracking down on problematic content online.

Currently, Twitter “needs to trade with wildcard investors who already own 9% of the company and have the resources to buy the remaining 91%,” said Don Bilson, an analyst at Gordon Haskett Research Advisors. I am writing to the client by email.

It is unknown what happened and reversed. Agrawal said Musk chose not to join the board at some point that morning, but he didn’t specify the exact time of the morning and didn’t say which came first. ..

At the beginning of Monday, Musk claimed the theory that he “liked” a tweet from another user. “Eron has become the biggest shareholder’s freedom of speech. Elon was told to play well and not speak freely.”

In a big reversal, Elon Musk will not join the Twitter board

Twitter declined to comment and Musk did not respond to the comment request.

Agrawal also said that Musk had been background-checked. According to the person responsible for the background check of the appointment of a prominent board, this was probably looking for information that could harm the company if made public. Musk would have had to cooperate with such a check, he said.

Musk was involved in a battle with the Securities and Exchange Commission over his tweet. One suggests that he has secured enough money to keep his company Tesla private.

On Tuesday, Musk was accused of securities fraud by Twitter shareholders in federal court in Manhattan. The case focuses on Musk’s recent disclosure of Twitter ownership. According to SEC rules, Musk had 10 days to disclose to the SEC that it had acquired more than 5% of the company. Musk reached its benchmark on March 14, but waited until April 4 to disclose its holdings. The disclosure caused the stock price to skyrocket by about 30%. The proceedings seeking the status of a class action allege that anyone who sold Twitter shares during that period missed the price increase and is obliged to pay compensation.

The proceedings allege that Musk had been motivated to postpone disclosure as it continued to acquire millions of shares after the disclosure date. During that period, the proceedings alleged that Musk saved $ 143 million by artificially buying at a lower price.The Washington Post last week announced that Musk was based on the stock price at the time. $ 156 million By delaying disclosure.

Musk used to use Twitter to criticize and solicit feedback about the company. For example, he wants the company to add an “Edit” button. This will allow you to make changes after the tweet is published. Following a poll posted by Musk, Twitter said he was doing the work last week.

But Mask’s biggest complaint is that Twitter refused to allow certain types of content.

“Freedom of speech is essential for democracy to work,” Musk wrote on Twitter on March 25.

More than 70% of the 2 million people who voted answered “no”.

On Saturday morning, Musk informed Twitter that he would not join the board, Agrawal said. statement..

Musk’s tweet storm continued after his notification. After 5 pm, he commented that anyone who participated in Twitter Blue, a Twitter subscription service, should receive a certification checkmark. This seems to be addressing a long-standing complaint about the proliferation of spam accounts on the service, but it’s a rare declaration from a new board member.

Elon Musk addresses Twitter staff after internal protest

At 6:31 pm, he began a poll on whether Twitter should turn San Francisco’s headquarters into a homeless shelter — “because no one appears anyway.” This was a clear reference to the company’s indefinite remote work policy.

14 minutes before midnight, Musk made a lascivious joke listening to a previous tweet about establishing a university with the acronym TITS.

“Are you sure you want to remove w on Twitter?” Musk asked.

Many of the musk tweets of the day were later deleted.

Richard Greenfield, a partner at research firm Lightshed Partners, said of trustee liability, “when tweeting about turning a Twitter office into a homeless shelter, it was driven by trying to raise stock prices. It’s a little hard to believe that there is. ” Members of its board have against the company-Agrawal also mentioned in his announcement of Musk’s decision on Sunday night.

Musk’s resignation from the board could have a greater impact on him in a way. He is no longer limited to how he can use his voting rights, nor is he limited to the 14.9 percent stake in the company, which is an agreement he has made as a future board member.

Now Musk was able to join forces with other shareholders to force Twitter’s hand. As the new CEO, experts say Agrawal is particularly vulnerable to efforts to drive him out. Musk was able to replace members of the board and eventually collect enough shareholder votes to expel Agrawal.

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