Elon Musk first rejects Twitter board; later decides to buy the company

Alex Otkin, Journalist|April 19, 2022

Elon+Musk+buys+9.2%25+of+Twitter%2C+making+him+largest+shareholder.

Elon Musk photo taken from ft.com, Twitter photo taken from wikimedia and used under the creative commons license, edited by Alex Otkin

Elon Musk buys 9.2% of Twitter, making him largest shareholder.

Update: Since Elon Musk initially rejected to join the board of directors for Twitter, the public thought further ownership discussions between the billionaire and the company were coming to an end. On April 25th, 16 days after he initially rejected joining the board, Twitter settled a $44 billion deal with Elon, at a purchase of $54.20/share. Musk officially owns the social media company that he claims is the “digital town square of what matters vital to the future of humanity and debated.”

Tesla stock has gone down since the news was released Monday afternoon. Tesla stock investors were quick to sell their shares in fear that Elon will sell some of his own shares in Tesla to be able to pay for the $44 billion deal.

 

 

Elon Musk has rejected his spot on the directive board of Twitter set to be effective Saturday, April 9, and Twitter’s CEO Parag Agrawal has yet to say if Musk had given a reason for the decision.

According to Fox Business, Musk has recently become the largest shareholder of Twitter, buying $2.6 billion and owning 9.2% of the whole company. “Elon is our biggest shareholder, and we will remain open to his input,” said Twitter’s CEO Parag Agrawal.

Elon Musk invested an estimated $2.6 billion into Twitter (Twitter photo taken from wikimedia, graph photo taken from pexels, used under creative commons license, edited by Alex Otkin)

Since Musk had become the largest shareholder of Twitter, many expected Musk to take the position that Twitter offered him as a member on the board of directors. As stated by NPR, Musk declined the position on the morning it was set to take place, Saturday, April 9th, 2022.

Twitter set the restriction that owners up to 15% of the companies are not allowed on the board. This had many thinking Elon rejected the position because he was potentially planning on buying more of the company in the future.

In an interview with a frequent Twitter user, Sartell senior Zach Mathiasen, expressed his opinions on the Billionaire’s decision: “I use Twitter all the time, every day…Twitter would have changed for the better if Elon joined the board, I love his ideas.”

Tesla price was also positively affected by the purchase (Tesla photo taken from logowine, graph taken from nicepng.com, used under creative commons license, edited by Alex Otkin)

His effect on Twitter not only potentially issued changes in the company’s regulations but also increased the company’s stock price. According to Forbes, the Twitter stock went up “nearly 20%” since Musk announced his colossal investment. Tesla stock was also bumped a small percentage by Elon’s action.

“

I believe this is for the best.

— Parag Agrawal