Twitter Investors can thank Elon Musk, who went from an active user to the company’s largest shareholder after being upset by the social media giant’s contradictory free speech principles.
It’s been just under two weeks since the so-called “absolute of free speech” 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.
|ribbon||protection||else||they change||they change %|
|TWTR||Twitter you.||45.85||+1.37||+ 3.07%|
|SP500||Standard & Poor’s 500||446.59||+49.14||+ 1.12%|
Since the stake was revealed, Musk has kept Twitter management and Wall Street investors eager to learn more about his plans for the company.
On Thursday, they might get some hints about their next move. Musk will be interviewed by TED Conference President Chris Anderson, and he can talk about his potential next step with Twitter, adding to what was already a systematic timeline.
January 31: Musk begins buying Twitter shares
according to 13D Filing With the Securities and Exchange Commission, Musk made a series of cash purchases of Twitter shares between January 31 and April 1. Purchases ranged from $32.80 per share to $40.30 per share. In total, he bought 73.5 million shares for approximately $2.9 billion.
March 14: Musk reaches 5% threshold to require stake disclosure
The Securities and Exchange Commission (SEC) requires anyone who owns more than 5% of a company’s ordinary interest to disclose their holdings within 10 calendar days. Filing 13D shows that Musk crossed the 5% threshold on March 14th, but didn’t share detection Until April 4th.
March 25-26: Musk called on Twitter for freedom of expression
On March 25, Musk tweeted a poll asking his followers whether Twitter was “strongly adhering” to the principles of free speech. About 70.4% voted “no”, while 29.6% voted yes.
A day later, he He asked his followers what to do to fix the situation The possibility of launching a new platform was raised.
April 5: Twitter announces the appointment of Musk to the board of directors
On April 5, a day after news of Musk’s 9.2% stake, Twitter CEO Parag Agrawal Announced plans to appoint Musk to the company’s board of directors.
“I am excited to share that we have appointed elonmusk to our Board of Directors! Through conversations with Elon in recent weeks, it has become clear to us that he will add significant value to our Board of Directors,” Agrawal wrote on Twitter. “He’s a passionate believer and staunch critic of service and is exactly what we need on Twitter and in the boardroom, to make us stronger in the long run. Hi Elon!”
Musk responded to the tweet, stating that he looks forward to helping the board “make big improvements to Twitter in the coming months!”
April 6: Musk indicates he could take a more active role on Twitter
On April 6, Musk Presented 13D with SEC, which outlined specific details about his purchases of Twitter stock and suggested he could take a more active role at Twitter. The stake was initially disclosed in 13G, which is usually reserved for passive investors.
He also confirmed that he will not be allowed to own more than 14.9% of Twitter shares while on the board of directors or for 90 days thereafter. The submission indicates that the term of Musk’s board of directors will end at the 2024 annual meeting on Twitter.
April 9: Musk rejects a board seat
On April 9, Musk revealed in a new update to his 13D file that Refused to join Twitter’s board of directors. The filing also indicated multiple ways he could exert influence on Twitter moving forward.
The filing states that Musk may engage in discussions with Twitter’s board of directors or management “with respect to, including, but not limited to, potential business combinations and strategic alternatives, business operations, capital structure, governance, and management,” strategy or matters related to it. He 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, products, and service offerings.”
“Elon’s appointment to the Board was officially effective 4/9, but Elon shared the same morning that he will no longer be joining the Board of Directors,” Agrawal said in a staff memo and subsequent tweet on April 10. He is the best “.
Although Musk’s filing notes “have no current plans or intentions that would result in or relate to any of the transactions described,” she cautions that plans can change based on many factors, including “the relative attractiveness of alternative businesses and the opportunities for investment.”
Going forward, Wedbush Securities analyst Dan Ives believes that Musk can prepare for a “Game of Thrones” style fight against Twitter, with “the high probability that Elon will take a more aggressive stance toward Twitter and build his active stake in the company.”
Musk no longer joining the Twitter board could lead to a range of scenarios including 1) joining a private equity partner and forcing major strategic changes to Twitter and/or a sale, 2) creating more noise and anxiety on the Twitter Board/ execs with several proposed changes to the platform, or 3) Will Musk say “game over” cut his stake and go home, Ives wrote in a note to clients on Monday. Musk’s next poker (Next Deposit/Twitter stake) in this ongoing TV series between Elon and Twitter.”
Musk’s Ted Talk is expected to take place between 11:45 a.m. ET and 2:30 p.m. ET Thursday.