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Elon Musk will not join the Twitter board in a sudden turnaround

SAN FRANCISCO – Less than a week after announcing that Tesla CEO Elon Musk will join the board of directors, Twitter reversed the course.

Twitter CEO Parag Agraval announced the newswhich followed a weekend of Musk tweets suggesting changes to Twitter, including making the site ad-free. Nearly 90% of Twitter’s revenue in 2021 comes from advertising.

“Elon’s appointment to the board was due to take effect on 4/9, but Elon said that morning that he would not join the board,” Agraval wrote in a re-published note, originally sent to Tesla staff. “I believe this is for the best.”

Agraval offered no explanation for Musk’s apparent decision. He said the board understood the risks of including Musk, who is now the company’s largest shareholder, as a member. But this, “he thought Elon was the company’s fiduciary, where he, like all board members, must act in the best interests of the company and all our shareholders, is the best way forward,” he wrote.

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Musk posted several mysterious tweets late Sunday, including one showing a meme that said, “Honestly, your honor, my client was in goblin mode,” followed by one that said, “Explains everything.” Another, later tweet was an emoji with his hand over his mouth.

He now has a 9% stake in Twitter, which raises questions about how he can try to reshape the social media platform as the largest shareholder on Twitter.

Musk’s 80.5 million followers on Twitter make him one of the most popular figures on the platform, rivaling pop stars such as Ariana Grande and Lady Gaga. But his fruitful tweets sometimes got him in trouble, such as when he used it to promote his business, gather loyalty to Tesla, question pandemic measures and choose battles.

In a famous example, Musk apologized to a British cave researcher who claimed that Tesla’s CEO had called him a pedophile, calling him a “pedo man” in an angry – and later deleted – tweet. The researcher filed a defamation lawsuit, although a jury in Los Angeles later approved of Musk.

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He is also embroiled in a long-running dispute with the US Securities and Exchange Commission over his Twitter activities. In 2018, Musk and Tesla agreed to pay $ 40 million in civil fines and Musk to approve his tweets from a corporate lawyer after he tweeted that he had the money to make Tesla private at $ 420 a share. That didn’t happen, but the tweet made Tesla’s share price jump. His lawyer claims that the SEC violates Musk’s right to freedom of speech.

Musk described himself as an “absolutist of freedom of speech” and said he did not think Twitter adhered to the principles of freedom of speech – an opinion shared by Donald Trump’s followers and several right-wing political figures whose accounts have been suspended for violating Twitter content.

But what actually prompted Musk’s involvement in Twitter is unclear. Other concerns about the service include arguing that Twitter’s algorithm is visible to the public, expanding the availability of “verified” Twitter accounts, and blowing up a profile photo initiative involving irreplaceable tokens or NFT.

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Musk also called “crypto spam bots” tweeting keywords related to cryptocurrency and then posing as customer support for empty consumer crypto wallets, “the most annoying problem on Twitter.”

The CEO of Twitter and other board members praised Musk, suggesting he could take his ideas seriously.

Agrawal’s initial actions after co-founder Jack Dorsey took office in November involved reorganizing units without making major changes. The company has long lagged behind its competitors on social media and boasts far fewer users.

Copyright 2022 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.



Elon Musk will not join the Twitter board in a sudden turnaround

Source link Elon Musk will not join the Twitter board in a sudden turnaround

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