Maybe Twitter stock (TWTR) should not be taken out of the surprise news Elon Musk will not join the company board.
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| Elon Musk |
Shares of the social media platform dropped by as much as 4% in pre-market trading Monday as Twitter revealed Musk will not be joining the board.
"Elon has decided not to join our board," Twitter CEO Parag Agrawal said in a new tweet. "I sent a brief note to the company, sharing it with all of you here."
Agrawal continued, "The Board and I had many discussions about Elon joining the board, as well as Elon directly. We were happy to co-operate and clarify the risks. properly the company and all our shareholders, it was the best way forward.The board gave him a seat.On Tuesday we announced that Elon would be appointed to the Board of the Board on a merit and official basis. acceptance. "Elon shared that morning that he will not join the board. I believe this is the best."
Agrawal went on to warn of "impending disturbances."
The news (coming after a weekend of wild Twitter-related tweets from Musk, including a poll since being removed to turn Twitter HQ into a shelter for the homeless) is about faces, but now turning Musk into an active Twitter investor.
You see, when Musk took a 9.2% stake on Twitter last week he agreed not to increase his share to more than 14.9%. In exchange, he was given a seat on the Twitter board. That agreement is void and void as of today, giving Musk the opportunity to expand his stake on Twitter and add more heat to Agrawal.
That would be great on Twitter.
Musk can also afford to buy Twitter, if he chooses to spend his billions that way. That, too, could be good from a market perspective.
Make no mistake, Twitter actually needs to be moved - which may be better run by Musk outside the boardroom or as its private owner.
Says Jefferies technology analyst Brent Thill, "They needed [Twitter] to exchange things. Twitter is in a weird way, and they haven't started innovating as fast as they could."
Musk is the bully, even though he has turned Twitter into a public corporate joke.
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Courtesy Grizler.com
