August 16, 2022

Elon Musk has refused to affix the board of Twitter amid mounting hypothesis he desires to purchase extra of the enterprise.

The 50-year-old, who turned the social media platform’s greatest shareholder final week with a 9.2 per cent stake, was anticipated to take his seat as a director on Saturday.

However after a weekend of tweeting criticism of the corporate, it emerged the Tesla tycoon has turned the job down.

Eyes on the prize: Elon Musk, who spent the weekend criticising Twitter, has declined to take a spot on the board

Saying the U-turn on Twitter, the agency’s chief govt Parag Agrawal stated: ‘I imagine that is for the most effective.’

The transfer set tongues wagging that Musk, the electrical automobile maker’s chief govt, may look to extend his stake within the coming months. And a few imagine the choice to not be a part of the board leaves him free to attempt to purchase Twitter.

One knowledgeable at a Los Angeles funding agency claimed {that a} Sport Of Thrones-style battle has now been arrange between the billionaire and Twitter executives. 

Dan Ives, analyst at Wedbush, stated Musk will take a extra aggressive strategy to purchasing Twitter inventory.

He stated: ‘This now goes from a Cinderella story, with Musk becoming a member of the Twitter board and retaining his stake underneath 14.9 per cent, serving to transfer Twitter strategically ahead, to seemingly a Sport Of Thrones battle between Musk and Twitter.’

He added there was a ‘excessive probability that Elon takes a extra hostile stance in direction of Twitter and additional builds his lively stake within the firm’.

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Musk, the world’s richest man, turned Twitter’s greatest shareholder when he snapped up a 9.2 per cent stake for £2.2billion final month. 

He was then provided a seat on the board and seemingly agreed to not elevate his holding above 14.9 per cent in the course of his contract – which was attributable to finish in 2024.

Musk’s choice to not take up the job sparked hypothesis he does desire a greater stake.

His refusal to affix the board coincided with a barrage of tweets – some apparently jokes – about how he thinks Twitter might be improved.

Musk, a prolific tweeter with 81.2million followers, steered changing Twitter’s San Francisco headquarters right into a homeless shelter. 

He additionally requested if the platform is ‘dying’ attributable to a lot of its most-followed accounts – together with these belonging to pop stars Justin Bieber and Taylor Swift – not tweeting continuously.

‘Convert Twitter SF HQ to homeless shelter since nobody reveals up anyway,’ he wrote, together with a ballot permitting customers to agree or disagree.

Greater than 90 per cent of practically 2m respondents voted ‘sure’ on Saturday earlier than the ballot was deleted.

He later tweeted on Sunday: ‘I’m critical about this one btw.’

Twitter introduced final month that staff can make money working from home ‘eternally’, adopting the same coverage to a number of different tech giants because the Covid pandemic started.

Saying Musk’s choice to not be a part of the board, Agrawal stated in his tweet: ‘We are going to all the time worth enter from our shareholders whether or not they’re on our board or not. Elon is our greatest shareholder and we’ll stay open to his enter.’

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He additionally took a swipe at Musk who final week precipitated a media storm by suggesting Twitter ought to implement an edit button. 

Agrawal added: ‘There will likely be distractions forward however our objectives and priorities stay unchanged. 

Let’s tune out the noise, and keep targeted on the work and what we’re constructing.’ Musk responded on Twitter with an emoticon of a face with hand over its mouth.

He’s understood to be upset about Twitter muzzling free speech and suspending high-profile figures like Donald Trump.

Susannah Streeter, an analyst at Hargreaves Lansdown, stated: ‘It’s clear Elon Musk desires to retain the total freedom to criticise firm coverage, to steer it in his desired path of journey and he nonetheless has a ringside seat, remaining the largest shareholder and likewise has the facility of his 81m Twitter followers to just do that.’