On April 5, the social media company Twitter (Twitter) said in its latest 8-K filing with the U.S. Securities and Exchange Commission (SEC) that the company would appoint Elon Musk as a member of the company's board of directors.
Musk will serve as a Second Class of Directors for a term that expires at Twitter's 2024 annual shareholders' meeting, the documents said. For the entire 90 days after a director's term or end, Musk may not hold more than 14.9% of Twitter's issued common stock. Twitter CEO Parag and Musk both expressed their happiness and expectation for joining Twitter on Twitter.
The day before, SEC filings revealed that after Musk bought nearly 9 percent of Twitter's stake, the stock rose as much as 27 percent that day. On the same day, Twitter shares continued to rise until 9%, and fell back to about 2% at the close.
Even after being fined $100,000 for illegally taking a stake in Twitter, Elon Musk overtook Jeff Besso to become the richest man again.
The stake, despite Musk's stated that he had no intention of seeking control or altering Twitter's operations, remained restricted to holding less than 14.9 percent, possibly due to the impact of Musk's more aggressive approach to business and the fact that Musk launched an online vote on Twitter, writing: "Free speech is essential to a functioning democracy." Do you think Twitter strictly adheres to this principle? "Implies the intention to promote the reform of Twitter's business." Shareholders have reservations about it.
In addition, on the virtual currency, the value of Dogecoin, which was previously highly sought after by Musk, has risen sharply. Tesla allows Dogecoin to settle payments at its charging stations as well as in its online stores, and with Musk's onboarding tweets, it is also possible to promote Dogecoin's use on Twitter. This shows Musk's influence on investment orientation.
Compared with tesla's huge scale, Twitter is like a dime, why is Musk so obsessed with Twitter? As early as March 13, Musk bought 9.2% of Twitter's passive shares, becoming the largest shareholder of Twitter, but passive shares do not have the right to interfere in the company's operations, what is the purpose of Musk's move, is it just optimistic about Twitter's prospects?
Foreign media analysis believes that buying Shares in Twitter is just the beginning, and Musk is trying to play a more active role in Twitter's operation, and may even eventually complete the acquisition. In any case, Musk will change the direction of Twitter.
In recent years, the operation of Internet giants such as Twitter and Facebook (now Meta) has been greatly affected, in order to reverse the decline, Facebook has successively changed its name to enter the meta-universe, and strange tricks have been frequent. Twitter's cooperation with Musk is also a powerful combination.
In terms of investment value, musk can not deny the outstanding contributions made by Musk in the history of Tesla's growth, but the characteristics of personal style are too distinct, and he is a very influential figure in the Twitter community, if it has too much impact on the operation of Twitter, it will make the company's risk increase, and the same is true for investors. Twitter's current high is an assessment of the value of managers, and the future direction is unknown.