Elon Musk joining Twitter’s board of directors would be a horrible idea.
Why? You may ask, doesn’t the board essentially control the company? Yes and no. Yes, the board controls many of the important decisions relating to the management of any publicly traded company, but there’s a catch…
Those serving on the board of directors for any public company have their level of ownership legally capped at 14.9%.
In other words, if Musk were to serve on Twitter’s board, he couldn’t’ become the single largest majority shareholder of the company, or purchase the entire thing outright.
At the end of the day, the board serves the interests of, and is subordinated to its shareholders. If someone owns 51% or more of a company’s outstanding shares then they have a majority of all the voting power in the company.
It appears as if Musk is aiming to do exactly that through foregoing a board position, despite already owning a large portion of Twitter.
Here’s the latest buzz on Elon Musk’s continued acquisition of the social media giant:
The widely reported pervasive fear among the Twitter workforce that Elon Musk may endanger or even end their systemic censorship regime illustrates how central of a tactic internet censorship has become for US liberalism. Information control is vital to their worldview.
— Glenn Greenwald (@ggreenwald) April 12, 2022
Elon Musk not taking a board seat is bullish for free speech coming back to Twitter.
The board seat was a proposed tactic by Twitter's current execs & board to curb his influence (limiting his maximum shares to 14.9%).
Musk can now pursue a hostile takeover if he so chooses.
— Jordan Schachtel @ dossier.substack.com (@JordanSchachtel) April 11, 2022
The Block reports:
Twitter CEO Parag Agrawal announced the change of heart in a tweet late Sunday. Agrawal didn’t explain Musk’s decision, but said he believes it’s “for the best.”
This is just hilarious.https://t.co/2ncs1MTlgt
— Kyle Becker (@kylenabecker) April 12, 2022
JUST IN – Elon Musk’s SEC filings reserve the right to buy a larger stake in Twitter – The Verge
— Insider Paper (@TheInsiderPaper) April 11, 2022
The New York Times, along with all other leftist outlets, has taken a negative tone to Musk potentially buying out the company:
It was a promise — or perhaps it was a threat. Either way, the filing encapsulated the treacherous situation that Twitter now finds itself in.
Mr. Musk, 50, Twitter’s largest shareholder and one of its highest-profile users, could very well use the social media platform against itself and even buy enough shares to take over the company.