Here’s what Musk has the ability to potentially do as a major investor in the company.
Elon Musk stands in the foundry of the Tesla Gigafactory during a press event in Aug. 13 in Brandenburg, Germany.Updated: April 11, 2022 11:08 AM EDT | Originally published: April 8, 2022 11:52 AM EDTne of corporate America’s most notable loudmouths has acquired the largest stake in the home of online loudmouths: Twitter, the microblogging platform. Of course, the person in question is multi-billionaire Elon Musk, the wealthiest person on earth, worth a staggering $288 billion.
However, the weekend news that Musk is once again off the board means he could purchase more than 15% of the stock and is now able to mount a takeover of the company, if he chose to do so. Musk surely has the funds to purchase the entire enterprise and Zino doesn’t rule out a complete take over eventually.Taking a position on the board of directors would have let Musk, along with the other 11 directors, steer the company’s business strategy and make decisions on financial matters.
Musk already suggested the addition of an edit button to the microblog. That would put the site in line with Facebook’s practice.Musk has had run-ins with the Securities and Exchange Commission for alleged securities law violations. For instance, in 2018 he declared on his Twitter feed that he’d take Tesla private at a high stock price and had the funding ready to do so. But that didn’t happen. As a result the SEC sued Musk.
In the recent instance, Musk organized a poll on Twitter soon after he’d already purchased his 9.2% stake in the company. Regulations say he should have revealed the purchase at an earlier date. The idea behind the SEC disclosure mandate is to alert investors with full information about who is buying a significant stake in a company and when they were doing it. Such information helps other investors make informed decisions about whether to buy or sell stock.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Elon Musk unveils vision for Twitter after joining boardThe Tesla boss, who now has a 9.2% stake in the social network, has offered suggestions and criticisms in a series of tweets
Read more »
Elon Musk will not join Twitter board of directors, company says🚨 Elon Musk will not join Twitter board of directors, company says
Read more »
Elon Musk will not join Twitter board after all, company’s chief executive saysParag Agrawal says the company’s largest shareholder has declined to join the board, and ‘I believe this is for the best’
Read more »
Elon Musk U-turns on joining Twitter board after becoming firm's largest shareholder'I believe this is for the best,' Twitter CEO Parag Agrawal says, adding that the company has been 'clear about the risks' of Musk joining the board.
Read more »
Elon Musk reverses earlier decision to join Twitter boardTesla CEO Elon Musk will not be joining the board of Twitter, the social media giant has announced, reversing a move announced just last week.
Read more »