Recently, the news that Elon Musk has acquired a 9.2% stake in Twitter has quickly become a flashpoint, however, it did not take long for a more exciting "sequel" to be born: Musk decided to give up joining Twitter's board.
Twitter CEO Agrawall said Musk would not accept appointments on his board.
Agrawal revealed that Musk was supposed to officially become a member of Twitter's board of directors from April 9, but on this day, Musk refused.
After the news fermented, Musk released a tweet:
Many people are very confused, since Musk has become the single largest shareholder of Twitter, why did he give up on the board? According to common sense, doesn't entering Twitter's board just so that Musk can have a greater say in order to resolve his dissatisfaction with Twitter?
Although neither Musk nor Agrawall gave a clear reason, we can analyze some possible factors.
First, although Musk acquired a 9.2% stake in Twitter and became the single largest shareholder, this share is still not enough to exert enough influence on Twitter and cannot really intervene in Twitter's operation and management.
Well, for Musk, it is possible to continue to expand his Twitter stake through hostile takeovers. However, if Musk enters the board, it means that his stake cannot exceed 14.9%, which will greatly constrain his further acquisition of shares.
Therefore, not entering the board may be Musk's choice to have a greater voice in order to acquire more shares in Twitter.
Second, Musk's biggest dissatisfaction with Twitter is the so-called freedom of speech, but if he becomes a director of Twitter, he must "act in the best interests of the company and all its stakeholders." This means that Musk may no longer be able to speak freely and will have to make his own unwilling "sacrifices" when tweeting.
Musk, who is absolutely committed to freedom of expression, cannot accept this. In contrast, it is not only that the board is more in line with its personality and ideas.
Another point is that joining Twitter's board must undergo a comprehensive "background check", which may also be one of the reasons for Musk's doubts. You know, Musk is not an undisputed person.
Of course, as a Twitter party, in fact, you may not be willing to join the board of directors with a fierce criticism of the company, which makes the original shareholders and management worried that the company's strategy and policies will be affected by Musk.
No matter what reason Musk gave up his board seat, I believe it will not change his original intention. Perhaps in the near future, Twitter will completely "change the door" and become what Musk thinks.
We'll see!