Twitter shares jumped after Elon Musk took a seat on the board

Ilona Maska’s investment in Twitter comes after he said he was considering creating a new social networking platform.

Jim Watson AFP | Getty Images

Shares of Twitter rose more than 7% on Tuesday in pre-market trading after Elon Musk was appointed to the company’s board of directors.

The appointment, revealed in a release filed with the SEC, came after Musk took a passive stake of 9.2% in the company, making him the largest shareholder. The stake is worth nearly $ 3 billion.

Twitter’s stock price rose 7.32% to $ 53.63 at 9:02 a.m. ET on Tuesday. The rise follows Twitter’s best trading day since its IPO in 2013, with shares rising more than 27% on Monday.

“After talking to Ilona in recent weeks, it has become clear to us that he will bring great value to our board,” Twitter CEO Parag Agraval said on Twitter.

“He is both an ardent believer and a serious critic of the service, which is exactly what we need on Twitter and in the boardroom to make us stronger in the long run,” he added.

Musk responded that he looks forward to working with Agrawal and Twitter management to make “significant improvements” to the platform.

On Monday, Musk asked Twitter users if they wanted an edit button added to the platform.

“Do you want an edit button?” Musk asked in the poll. At the time of writing, the poll received 2,333,856 votes, of which about 73.6% voted in favor and 26.4% voted in favor.

Agraval retweeted Musk and urged people to “vote carefully” as the consequences “will be important”.

On April 1, or Laughter Day, Twitter posted a message through its official account that it was working on an “edit” button. When asked by the company if it was a joke, she said: “We can’t confirm or deny, but we can edit our statement later.”

While the edit button will allow Twitter users to correct grammatical errors, there are concerns that it will also allow them to edit the meaning of a tweet, which can be problematic if that tweet went viral and had millions of impressions.

In response, Meta CTO Andrew Bosworth claimed that he and his team solved the problem on Facebook “a long time ago” by including an indicator that it had been edited along with the change log.

Mask’s appointment to the Twitter board came after he said he was considering creating a new social networking platform. Tesla’s CEO doesn’t like his tweets being handled by regulators such as the US Securities and Exchange Commission.

“Given that Twitter is a de facto public city square, non-compliance with the principles of freedom of speech fundamentally undermines democracy,” Musk tweeted on March 26. “What to do?”

Musk was summoned to the SEC in November after he asked his followers on Twitter if he should sell 10% of his shares in Tesla, which led to a drop in shares.

Bilal Hafiz, CEO of financial market research company Macro Hive, told CNBC’s Street Signs Europe on Tuesday that Musk had had problems with Twitter for some time, adding that he was unhappy with the firm’s approach to free speech and product development.

“It seems that Elon really cares about the direction of Twitter,” Hafiz said. “The question is to what extent he will be active in terms of further direction of the campaign.”

Hafiz added that Musk could try to attract an outsider to run Twitter. Agraval previously held the position of CEO.

“More fundamentally, there is the issue of Twitter’s revenue growth model,” Hafiz said. “It does have aggressive goals for its daily active users, but is unlikely to be achieved. Revenue growth, although it increased during the pandemic, was not as great as many other platforms over the same period of time.”

Twitter shares jumped after Elon Musk took a seat on the board

Source link Twitter shares jumped after Elon Musk took a seat on the board

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