The Fox News staffer reacts to the billionaire entrepreneur reversing his decision to join the Twitter board at The Evening Edit.
Twitter investors can thank Elon Musk, who went from being an active user to becoming the company’s largest shareholder after being angered by the social media giant’s conflicting principles of free speech.
It’s been a little less than two weeks since the so-called “free speech absolutist” took a surprising 9.2% stake in the social media platform. This month, Twitter shares are up nearly 17% while the S&P 500 is down 2% over the same period.
| ticker | security | Last | To change | To change % |
|---|---|---|---|---|
| TWTR | Twitter Inc. | 45.85 | +1.37 | +3.07% |
| SP500 | S&P500 | 4446.59 | +49.14 | +1.12% |
Since disclosing the stake, Musk has kept Twitter management and Wall Street investors on their toes to learn more about his plans for the company.
On Thursday, they may get some clues as to what’s coming next. Interviewed by TED Conferences leader Chris Anderson, Musk may tweet his next potential move, adding to the already methodical timeline.
ELON MUSK FOLLOWS SUITS FROM SHAREHOLDERS FOR DELAY IN DISCLOSURE OF TWITTER SHARES
Jan. 31: Musk begins buying Twitter stock
Musk made a series of cash purchases of Twitter stock between Jan. 31 and April 1, according to a 13D filing with the Securities and Exchange Commission. Purchases ranged from as low as $32.80 per share to $40.30 per share. In total, he bought 73.5 million shares for around $2.9 billion.
March 14: Musk meets required 5% threshold, disclosure of holding
The SEC requires anyone who acquires more than 5% of a company’s common stock to disclose their holdings within 10 calendar days. The 13D filing shows that Musk appears to have surpassed the 5% threshold on March 14, but he only disclosed the stake on April 4.
ELON MUSK CANCELS CITY HALL WITH TWITTER STAFF AFTER TWITTER BOARD SEAT DECLINED
25-26 March: Musk calls for free speech on Twitter
On March 25, Musk tweeted a poll asking his followers if Twitter “rigorously adheres to the principles of free speech.” About 70.4% voted no, while 29.6% voted yes.
A day later, he asked his followers what should be done to fix the situation and suggested the possibility of launching a new platform.
April 5: Twitter announces Musk’s appointment to the board
On April 5, a day after news of Musk’s 9.2% stake broke, Twitter CEO Parag Agrawal announced plans to appoint Musk to the company’s board of directors.
“I am pleased to announce that we are appointing @elonmusk to our board! Through discussions with Elon over the last few weeks, we realized that he would bring great value to our board,” Agrawal tweeted. “He is both an ardent supporter and intense critic of the service, which is exactly what we need on @Twitter and in the boardroom to make us stronger over the long term. Welcome Elon!”
Musk responded to the tweet, noting that he looks forward to helping the board “improve Twitter significantly in the coming months.”
ELON MUSK IS MAKING MORE TWITTER NOISE DESPITE NOT A BOARD MEMBER
April 6: Musk signals he could take a more active role on Twitter
On April 6, Musk filed the 13D with the SEC that outlined the specific details of his Twitter stock purchases and suggested that he could take a more active role on Twitter. The holding was initially disclosed in a 13G typically reserved for passive investors.
It also stressed that he could not own more than 14.9% of Twitter stock while serving on the board or for 90 days thereafter. The filing notes that Musk’s term on the board would expire at Twitter’s 2024 annual meeting.
April 9: Musk turns down board seat
On April 9, Musk announced in a new update of his 13D filing that he declined to join Twitter’s board of directors. The filing also signaled several ways he could make an impact on Twitter in the future.
The filing states that Musk may hold discussions with Twitter’s board or management team “about, among other things, potential business combinations and strategic alternatives, business operations, capital structure, governance, management,” strategy, or matters affecting him. It adds that Musk may express his views directly to board members or executives “and/or the public through social media or other channels regarding [Twitter’s] Business, product and service offerings.”
“Elon’s appointment to the board was to be officially effective on April 9, but Elon announced that same morning that he would no longer be joining the board,” Agrawal said in a note to employees and a subsequent tweet on April 10. “I think that’s for the best.”
Although the filing notes that Musk “has no current plans or intentions that would result in or relate to any of the transactions described,” it warns that plans could change based on numerous factors, including “the relative attractiveness of alternative business.” – and investment opportunities. “
Dan Ives, an analyst at Wedbush Securities, believes that Musk could be preparing for a Game of Thrones-style battle against Twitter, with “the high likelihood of Elon taking a more hostile stance on Twitter and his active involvement in the company.” continues to expand. “
“Musk’s resignation from the Twitter board could lead to a variety of scenarios, including 1) merging with a private equity partner and forcing Twitter to make important strategic changes and/or a sale, 2) create more noise and fear for Twitter board/executives with various proposed platform changes, or 3) Musk says game over, downplays and goes home,” Ives wrote in a note to clients Monday. “In our view, the likely paths 1 or 2 with the street now focus on Musk’s next poker (next filing/call to Twitter) in this ongoing Elon-Twitter soap opera.”
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Musk’s Ted Talk is scheduled to take place between 11:45 a.m. ET and 2:30 p.m. ET on Thursday.