Elon Musk and the danger of becoming trouble for Twitter-Information Technology

Despite holding the largest share in Twitter, Mr. Elon Musk’s failure to join the board of directors could become an “outsider” causing headaches for this social networking group.

Tesla CEO Elon Musk – Twitter’s largest shareholder with 9.2% shares – decided not to join the board of this social networking group, leading to the possibility of Mr. Musk becoming a “main investor”. dynamic” and greatly influenced the way Twitter operates.

A filing with the U.S. Securities and Exchange Commission (SEC) on April 9 said Musk may discuss with Twitter’s board and leadership on issues such as products and services, merger potential and corporate governance. Besides, Mr. Musk can also express his views on Twitter on social networks or other channels. The filing also said that Mr. Musk does not currently intend to change the shares, but still has the right to change his mind if he sees fit.

If he becomes a board member, Mr. Musk’s stake will be capped at 14.9%. Musk’s rejection of the offer, however, has some analysts raising the possibility that he could aim for a more aggressive approach to the way Twitter operates, perhaps even a hostile takeover. .

Some Twitter employees have said that Elon Musk becoming the largest shareholder of Twitter has made them feel nervous, insecure and concerned about the direction of the group. Last week, Twitter announced that it would hold a Q&A session between employees and Elon Musk, but later canceled the event.

Mr. Musk is a man who has long expressed a view that is different from normal business standards and is willing to “fight” to defend his views and interests. In many debates with the SEC, lawmakers and competitors, Mr. Musk is also willing to use the Twitter account with more than 81 million followers as an effective weapon.

Twitter is a means used by Mr. Elon Musk to attract media attention and thereby attract investors to help Tesla survive and develop. Mr. Musk’s efforts have helped turn Tesla into the world’s largest auto company by market capitalization, with the brand emerging from social media rather than relying on a traditional advertising model.

For the Twitter group itself, the sometimes unpredictable behavior associated with Mr. Elon Musk’s business views could bring trouble, especially if Mr. Musk decides to buy more shares. Morningstar analyst Ali Mogharabi said that if Mr Musk decides to increase his stake in Twitter to 15%, the pressure from the billionaire on Twitter could become huge.

Mr. Elon Musk is likely to become one of the biggest challenges for Twitter CEO Parag Agrawal. Responding to the events involving Mr. Musk, Mr. Agrawal said: “Our goals and priorities will not change… The decisions that are made and how they will be implemented remain in our hands. and no one else”.