Agrawal noted that despite Musk’s decision not to join the company’s board as an active shareholder, his input will still be invaluable in moving the firm forward.
The shares of American microblogging and social networking service company, Twitter Inc (NYSE: TWTR) is trading low in today’s pre-market as investors are weighing Elon Musk’s decision not to take a seat on the social media giant’s board. The shares slumped by more than 8% to $43 per share, however, it has pared off the losses and at the time of writing, it is down 3.74% to $44.50 per share.
The past week has been a very intriguing time for Twitter’s shareholders as the revelation of Elon Musk as the company’s largest shareholder was well-received by all. With the announcement of Musk’s 9.2% stake in Twitter, the company’s shares surged by more than 27% on Monday, an upsurge that represents its best trading day since its Initial Public Offering (IPO) back in 2013.
Elon Musk is not just a Wall Street model to have on your team, he is also a big influencer on Twitter. Known to have more than 81.3 million followers on Twitter, the thought of Musk joining Twitter’s board represented a good omen that energized investors and pushed them onto a massive stock accumulation in the past week.
The board rejection move was confirmed by Twitter’s Chief Executive Officer Parag Agrawal who took to the company’s platform to share the news.
“Elon has decided not to join our board,” Agrawal wrote on Twitter Sunday. “I sent a brief note to the company, sharing with you all here.”
Elon has decided not to join our board. I sent a brief note to the company, sharing with you all here. pic.twitter.com/lfrXACavvk
— Parag Agrawal (@paraga) April 11, 2022
Agrawal noted that despite Musk’s decision not to join the company’s board as an active shareholder, his input will still be invaluable in moving the firm forward.
“We were excited to collaborate and clear about the risks,” he wrote. “We also believed that having Elon as a fiduciary of the company where he, like all board members, has to act in the best interests of the company and all our shareholders was the best path forward.”
Are There Brighter Days for Twitter Shares with Musk?
While it cannot be argued that Elon Musk is one of the most innovative minds in the tech space today, there is still a caveat to his long-term impact in helping Twitter succeed.
Contributing ideas to the social media giant will notably not be an issue as he has started making suggestions to reduce the subscription fees to Twitter Blue, a special service that opens access to exclusive functions to users. Musk has also suggested removing adverts on the special service in order to focus on innovative policies for the company.
The concerns in the long term, however, revolve around Musk’s erratic tweets even for his own firms as he has done with his electric auto manufacturing company, Tesla Inc (NASDAQ: TSLA), some of which have cost shareholders a significant loss. Nonetheless, the positivity that Musk brings to the table seems to surpass the negativity and Twitter shares seem to be pricing in this reality at this time.
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