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Elon Musk NOT Joining Twitter Board—Looks Like He Wants More Of The Pie


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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 Block reports:

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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.”

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.



 

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