Elon Musk Backed Out Of Buying Twitter?
Elon Musk is backing out of his new Twitter investment in a big way.
This article is more than 2 years old
Elon Musk didn’t technically buy Twitter when he became the social media platform’s largest shareholder last week. However, because of his immense and seemingly strategic purchase, it did look like he would get a place on the company’s board. Twitter CEO Parag Agrawal even conveyed his belief that Musk would be a worthy asset as an elite member of Twitter’s round table. In a surprising turn of events, however, AP News reported that Elon Musk will not be joining the board unlike what was previously thought.
Elon Musk was supposed to become an official member of the Twitter board on April 9, 2022, and at this point, it remains unclear as to why he decided to vacate his seat before ever once sitting in it. Agrawal informed the public via a tweet of Musk’s about-face. Unfortunately, he did not offer any explanation as to why Musk has ultimately chosen to reverse his decision. Agrawal simply cited that he believed Musk’s choice was for the best.
Other industry professionals have been speculating as to why Elon Musk forewent his opportunity to become one of Twitter’s board members. Harry Kraemer, who works as a clinical professor at Northwestern University, pointed out that “If you want to take over a company, you’re usually in a better position to not be on its board.” Kraemer continued to explain that board members have to work as a collective and have the best interests of the company in mind at all times. Essentially if you want to be on a company’s board then you can’t have your own ulterior motives or agenda. The speculative thought then is that Musk may have his own plans in store for Twitter and thus being on the board would only serve to put a crux in those plans.
Elon Musk has yet to give any specific details regarding his endgame for Twitter. However, in the past Elon Musk has had a lot to say about the way Twitter runs things. His criticism over the social media platform’s lack of an edit button is a good example. Additionally, even though Musk has yet to address his overall plans for Twitter publicly, he did use social media to make allusions as to his possible thoughts. For instance, he mentioned a possible integration of the popular cryptocurrency dogecoin.
As a result of Elon Musk’s vagueness, Twitter stock took a considerable hit. According to CNBC, Twitter stock initially surged by 30% when Musk first grabbed hold of the shares that made him head shareholder. When Musk revealed he wouldn’t be joining the board, however, they plummeted back down nearly 10%. In a market as volatile as the stock market, a steep fall like that is to be expected, especially considering Musk’s quick and seemingly unexpected 180. Although, Twitter’s CEO remains unphased by both the stock market’s and Musk’s abrupt shifts. Agrawal was quoted telling employees that “There will be distractions ahead, but our goals and priorities remain unchanged.”
Ultimately, how Elon Musk will wield his new power at Twitter remains uncertain. He could try to take over the company entirely and rework all of his lofty ideas into the framework of the platform itself. He could also choose to go in a different direction entirely. In the end, no matter what happens, everyone will still be able to tweet about it.
