Twitter says Musk did not join the group, warning of ‘impending distractions’

April 11 (Reuters) – Elon Musk has turned down Twitter Inc. (TWTR.N) Offered to join its group, a dramatic turnaround when the billionaire became its largest shareholder in a week, with the social media company warning of “impending distractions”.

The company’s board held several discussions with Musk, Twitter CEO Barack Agarwal said in a note posted on the site on Sunday, but did not disclose the reason for Tesla. (TSLA.O) The decision of the leader.

Shares of Twitter traded down nearly 2% at $ 45.31 in Monday’s freemarket trading. On April 4, when Musk publicized its shares, they were up 27%, but since then they have fallen 7.5%.

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The planned appointment is expected to take effect on Saturday, with Agarwal almost failing to become the world’s richest man by owning more than 14.9% of Twitter’s common stock.

“I hope this is the best,” Agarwal said in the note. “There will be distractions ahead, but our goals and priorities will remain unchanged.” (https://bit.ly/3usFqhe)

The announcement came as a shock, with the company’s website showing Musk as a member of Twitter’s team.

Musk, whose net worth is estimated at $ 274 billion by Forbes, responded via Twitter with a face-to-face-mouth-emoticon. Tesla did not immediately respond to a request for comment from its CEO.

Musk, who calls himself an independent speaker who has been critical of Twitter, released a 9.1% stake on April 4 and said he plans to make significant improvements on the social media platform. read more

The issuance of shares sparked widespread speculation about his intentions, from his full acquisition of the platform to his active participation in corporate decisions.

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Elon Musk attends the opening of the new Tesla Gigafactory for electric cars on March 22, 2022 in Groenheid, Germany. REUTERS / File Photo by Patrick Pleul / Pool

CFRA research analyst Angelo Gino wrote in a client note that Musk’s recent decision opens up the opportunity for him to take a bigger position and make every effort.

“We thought the equity cap and board seats were originally meant to handcuff Musk on a number of things, and we think he’s not likely to be the only individual to sell his shares now,” Gino added.

Company sources told Reuters that the news that Musk had taken the board seat made some Twitter employees panic about the future of the social media company’s ability to moderate content. read more

Before taking stock, Musk conducted a Twitter poll asking if users were sticking to Twitter’s free speech policy.

A day after becoming the largest shareholder, Twitter launched another poll asking users if they want the Edit Button, a long-awaited feature that has been active. read more

Tesla’s employer asked users in a poll whether to turn Twitter’s headquarters into a homeless shelter, a project backed by Amazon.com Inc. (AMZN.O) Founder Jeff Bezos. read more

On Saturday, Musk suggested changes to the Twitter Blue premium subscription service, including lowering its price, banning advertising and offering the option to pay in cryptocurrency token. read more

“It’s clear Musk wants to retain full freedom to criticize corporate policy, and he’s directing it in the direction he wants to go,” said Susanna Schreider, a Hargreaves Lansdowne analyst.

“He still has a Ringside seat, a huge partner, and the power of his 81 million Twitter followers.”

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Report by Abhinaya Vijayaragavan, Nivedita Balu and Jubi Babu in Bangalore; Editing by Arun Coeur, Myong Kim, Edmund Cleman and Anil de Silva

Our standards: Thomson Reuters Trust Principles.

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