After being extended an invitation to join Twitter’s board, Elon Musk accepted — and then abruptly changed his mind. There could be huge ramifications.
The last week was no less than a rollercoaster for Twitter and its employees, including CEO Parag Agrawal and directors, who were informed Elon Musk would soon join the company’s board. Their nervousness was relieved just a few days later when Agrawal announced Musk would not join the Twitter board. Many, including several employees proud of their devotion to building a safer and better Twitter, breathed a sigh of relief after learning the platform’s most influential critic would not be controlling the company. We wouldn’t be understating if we said the world’s attention was hooked when the disclosure of Musk buying 9.2% shares in Twitter first flashed in the news. But what still grapples most of us — and folks at Twitter — is what Musk’s quick entry into and a quicker exit from the company’s panel of decision-makers holds for its future. The question about Musk’s intentions and how it impacts Twitter is more perplexing than the names of his child with Grimes. Still, we can try to dissect the possibilities based on the information that is already available so far. A few reasons could have prompted Musk’s decision not to join Twitter’s board of directors. The foremost is his appointment as a director would have prevented him from acquiring more than a 14.99% stake in the company. For Musk, the world’s richest person with a net worth in the ballpark of $220 billion, buying Twitter entirely at its total valuation would not be a challenging mission. With his decision not to join the board, Musk not only retains the option to buy more than a 15% stake in Twitter (as per the latest SEC filing) but even to stage a hostile coup if he desires. The likeliness of that happening is debatable, but Musk’s rebellious and anti-authority nature should not be taken lightly.
