Tesla CEO Elon Musk made a great turnabout in which he disclosed his massive stake in the social media company Twitter. He got a seat on its board and publicly floated drastic changes, and then turned down the board role ━ all happened in a week.
Musk now holds roughly 9% of a stake in Twitter and continues to push forward his ideas for reshaping the social media business.
Why Didn’t Elon Musk Join the Board?
Elon informed Twitter on Saturday that he wouldn’t be joining the board of directors after being invited five days earlier, according to the financial disclosure. Although he didn’t give any reason, the decision coincided when musk deleted some tweets.
These things made some changes to the company, such as dropping ads, its chief source of revenue, and transforming its San Francisco headquarter into a homeless shelter.
Musk left some hints on Twitter about his thinking, such as liking a tweet.
What’s Twitter Opinion On This?
Twitter CEO Parag Agarwal said Musk’s not joining the board is for a good reason but didn’t give an explicit reason for the same. But he also left some clues, noting that Musk has been awaiting the background checks and indicated that Twitter wanted him on the board rather than just a major shareholder because he would be legally and ethically bound to act in the interest of the company and of all the shareholders.
How Much Stake Does Musk Hold In Twitter?
Musk has been planning for this for a long time, but he began buying Twitter stock a few months ago. He started it on 31 Jan when he bought 620,000 shares @ $36.83 apiece. Since then, on every single trading day through April 1, he bought hundreds of thousands or millions more shares.
Altogether, Elon is in control of 73.1 million Twitter shares as of most accounts, or 9.1 of the company. He spent $2.64 billion buying them in the open market. If we talk about the market value of Twitter, including Musk’s stake, it is roughly $38 billion.