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What will happen to Twitter after Elon Musk has the power in his hands?

How much power does Elon Musk really have at Twitter at the moment and what is the billionaire’s ambition with this social network?

The combination of Elon Musk and Twitter has been the focus of recent days. For Twitter users, they are certainly familiar with the tweets of the richest man on the planet, but it seems that Elon Musk becomes a shareholder and joins the executive board of the social network. doubt.

Elon Musk bought a 9.2% stake in Twitter at a valuation of about $3 billion. It must be said that people are surprised because it is rare to see billionaire Elon Musk investing so much money. The Tesla CEO shares more shares in Twitter than the co-founder and former CEO of this social network, Jack Dorsey, who has resigned and will leave the board at the end of May. Dorsey owns just over 2% of the shares. the company.

According to CNBC, Elon Musk’s tenure on Twitter’s board of directors will last until 2024 and in theory, billionaire Elon Musk has become a powerful figure in Twitter, even bigger than Dorsey Future.

“Looking forward to working with [Twitter CEO Parag Agrawal] and the Twitter Board to make significant improvements to Twitter in the coming months!” Elon Musk tweeted on April 5.

Earlier, in a tweet posted on March 26, Elon Musk accused Twitter of “not complying with the principles of free speech”. The billionaire has also given “serious thought” to building his own social media platform. However, according to a filing with the Securities and Exchange Commission, Elon Musk bought back shares of Twitter on March 14. Thus, it seems that the Tesla CEO has targeted Twitter before and quietly “gathered” shares of this social network.

On April 5, Twitter noted that Elon Musk’s stake in the company should not exceed 14.9% during his board term. Still, analysts told CNBC that Elon Musk could still find ways to increase his ownership stake over time. Meanwhile, investors seem to be betting that Elon Musk can control Twitter. The social media company’s stock price jumped 27% on April 4 and continued to rise after the company announced Elon Musk as a board member.

How great is Elon Musk’s power at Twitter?

In theory, Elon Musk’s stake in Twitter is classified as “passive,” which means it’s below the 10% threshold for a shareholder to be considered an “active” or “activist” shareholder.

Usually, passive shareholders do not exert much control over the decision-making of the company’s management. But according to CNBC, Elon Musk might be the exception to that rule.

Twitter’s board of directors currently has 11 members, and Elon Musk has become the 12th member on the board, at least until Dorsey leaves next month. Besides, he also owns more than 9% of the shareholders’ votes. Functionally, that means he will need plenty of support from other board members and shareholders to get their approval on any future proposals.

In fact, Elon Musk seems to have enough ability to convince the board members as well as shareholders. He owns more than 80 million followers on Twitter and is also the richest person on the planet.

Twitter’s quick addition of Elon Musk to its board shows that its leadership is at least ready to “welcome” the billionaire’s ideas. In tweets on April 5, CEO Agrawal hinted that Elon Musk may have gained support from other members of the board, and the Twitter CEO suggested that recent conversations with Elon Musk led management to believe that “he will bring great value”.

“He is both an avid believer and a critic of the service, which is exactly what we need on Twitter and on the board to make us stronger in the long term,” Agrawal said. added.

In another move, Jack Dorsey has also publicly endorsed Elon Musk to become a board member. In a tweet on April 5, the former Twitter CEO said that Elon Musk “cares deeply about our world and Twitter’s role in it”.

Ambition of the richest person on the planet

According to CNBC, billionaire Elon Musk’s main goal is to promote changes in Twitter’s free speech policy. In recent years, Twitter has stepped up actions to combat misinformation and violent or inflammatory speech on its platform, even banning users who violate the company’s guidelines. An example is the case of former US President Donald Trump.

In contrast, Elon Musk has criticized Twitter and publicly complained about the company’s management trying to “freeze” his freedom of expression on social networks, although Elon Musk has not yet identified exactly. steps he would like to see Twitter take to promote free speech on the platform, but several recent tweets indicate that his new position could help the billionaire fight content censorship policies of the company.

Elon Musk has suggested making Twitter’s algorithm “open source” as a way to promote transparency about how the platform displays and suggests tweets. That idea could garner the interest of Twitter’s board members, as Jack Dorsey has endorsed it in the past.

An “edit” button, which allows users to change tweets after they are posted, may also be present. On April 4, Elon Musk tweeted a poll asking car followers if they would like an edit button on Twitter, and more than 73% of respondents chose yes.

Notably, CEO Parag Agrawal expressed concern about the results of the poll. “The consequences of this poll will be important. Please vote carefully.” the Twitter CEO wrote.

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