Twitter’s largest investor, billionaire Elon Musk, is reversing course and will no longer join the company’s board of directors less than a week after being awarded a seat.
Twitter CEO Parag Agrawal announced the news, which followed a weekend of Musk tweets suggesting changes to Twitter, including making the site ad-free. Nearly 90% of Twitter’s 2021 revenue came from ads.
Musk’s decision seems to have blindsided Twitter: at the time of writing, Musk remained listed on the company’s website as a member of its board of directors.
Wedbush analyst Dan Ives said the unexpected move could signal a more aggressive approach from Musk towards buying Twitter stock.
“This now goes from a Cinderella story with Musk joining the Twitter board and keeping his stake under 14.9%, helping move Twitter strategically forward, to likely a ‘Game of Thrones’ battle between Musk and Twitter,”
After he announced that he won’t be joining the board of directors he posted a cryptic tweet which he deleted in a few moments!
Elon Musk deleted this cryptic tweet after it was announced he won’t be joining Twitter’s board of directors…
So was this all just the biggest troll by Musk? Or a way to pump up Twitter’s stock?
From Daily Mail:
Twitter stock briefly dropped 8 percent in premarket trade Monday, trading at less than $43 per share, CNBC reported.
However, the drop recovered slightly and by 7.30 am ET was at $45.20 per share, an only 2.23 percent decline from closing on Friday.
News of Musk’s involvement in the company has caused Twitter stock prices to skyrocket over the last week, reaching a high of $53.84 per share on April 5.
As he is no longer joining the board, Musk can buy as much Twitter stock as he pleases – meaning he could attempt to acquire the company if he so wishes.
It’s also possible a board seat would have constrained Musk’s capacity for tweeting.