Instantly, Musk was Twitter’s largest particular person shareholder, with greater than 9% of the corporate, and hypothesis swirled about how he would affect the community’s future. He’d been often tweeting concepts for revamping the social media platform.
Over the subsequent week, Musk would settle for a suggestion to hitch Twitter’s board of administrators and, in a sudden reversal, reject that provide 5 days later, leaving the corporate’s administration, workers, buyers and observers guessing about his plans.
Will Musk proceed shopping for Twitter shares at market costs, slowly increase his place till he—doubtlessly with a sympathetic co-investor or one other present shareholder — holds sufficient of the inventory to manage its future? Will Musk resolve to purchase shares from Twitter’s different buyers? Will Musk in the end resolve to promote his shares and pocket his positive aspects? Because the information develops, right here’s a take a look at what’s occurred up to now:
January 31: Musk begins constructing his stake
Musk began quietly shopping for Twitter shares on January 31. By March 14, Musk had accrued an over 5% stake, the purpose after which he was purported to disclose the exercise to the Securities and Trade Fee, and by extension, the general public.
Musk missed the deadline to tell the SEC by 10 days. As a result of Twitter’s share value rose the second his stake was revealed, he was in a position to accumulate extra on a budget by not disclosing — a misstep that may later set off a shareholder lawsuit.
March 24: Musk begins critiquing Twitter, on Twitter
His stake nonetheless secret, Musk started tweeting criticisms of the corporate in late March.
“Apprehensive about de facto bias within the Twitter algorithm having a significant impact on public; Twitter algorithm ought to be open supply,” Musk tweeted on March 24.
“Free speech is important to a functioning democracy. Do you imagine Twitter rigorously adheres to this precept?” Musk requested his Twitter followers in a ballot posted on March 25.
“Is a brand new platform wanted?” Musk requested in a tweet on March 26. “Am giving critical thought to this.”
Is a brand new platform wanted?, Musk tweeted on March 26, 2022.
A number of customers commenting on the Tesla chief government officer’s tweet really helpful he look into shopping for Twitter as a substitute. Quickly they might discover out he was already buying shares.
April 4: Musk’s stake turns into public, and he’s invited to hitch Twitter’s board
Musk’s submitting listed him as a passive investor, and but, shortly after it turned public, he began tweeting out enterprise propositions for the social media firm.
Musk posted one other ballot on Twitter asking customers to vote on whether or not they wished the corporate so as to add an edit button that may enable individuals to alter tweets after they’ve been revealed.
Twitter CEO Parag Agrawal urged customers to “vote fastidiously” on the ballot. “The implications of this ballot can be necessary.”
The implications of this ballot can be necessary. Please vote fastidiously. https://t.co/UDJIvznALB
— Parag Agrawal (@paraga) 1649121795000
By the top of the day, Twitter invited Musk to hitch the board. Musk signaled that he would signal an settlement stipulating that he couldn’t personal greater than 14.9% of the corporate’s inventory.
April 5: Musk turns into an lively investor
Within the morning, a number of of Twitter’s board members took to the platform to congratulate Musk on his determination to hitch their ranks. Agrawal tweeted that the corporate and Musk had been chatting for weeks. Agrawal’s tweet led individuals to query why somebody engaged in discussions to change into a director would file as a passive investor.
I’m excited to share that we’re appointing @elonmusk to our board! By conversations with Elon in latest weeks, it turned clear to us that he would deliver nice worth to our Board.
I’m excited to share that we’re appointing @elonmusk to our board! By conversations with Elon in latest weeks,… https://t.co/zTYNBMiM3w
— Parag Agrawal (@paraga) 1649161968000
Later that day, Musk refiled the disclosure of his stake to categorise himself as an lively investor, making the change solely after indicating that he would settle for a seat on the social media firm’s board.
April 9: Musk rejects the board seat
The day that Musk was set to formally be part of Twitter’s board, Musk knowledgeable the corporate that he can be rejecting its supply. However, Twitter sat on the information for roughly 36 hours whereas ready to see whether or not Musk would change his thoughts. Twitter’s investor relations web site listed Musk as a board member all through the weekend.
Throughout that point, whereas the general public nonetheless thought Musk was set to hitch Twitter’s board, Musk tweeted a number of veiled criticisms and recommendations for the corporate. Musk requested his followers, “Is Twitter dying?”
Musk steered that everybody who indicators up for Twitter Blue, a subscription model for energy customers, ought to get an authentication checkmark. He steered Twitter ought to convert its San Francisco headquarters right into a homeless shelter “since nobody reveals up anyway.” And he made some crass jokes, suggesting elimination of the “w” in Twitter.
April 10: Twitter makes the information public
On Sunday, Agrawal sends out a be aware to workers, and later tweets it publicly. Neither Agrawal or Musk give a cause for the reversal.
Elon has determined to not be part of our board. I despatched a short be aware to the corporate, sharing with you all right here.
Elon has determined to not be part of our board. I despatched a short be aware to the corporate, sharing with you all right here. https://t.co/lfrXACavvk
— Parag Agrawal (@paraga) 1649646833000
April 11: Hypothesis abounds
Musk information an amended disclosure with the SEC. He can now buy as many shares as he needs. And not using a board seat, he now not has to behave in the very best curiosity of Twitter shareholders.
At Twitter, which doesn’t have a founder with majority management like different tech giants, workers are “tremendous burdened,” involved that that is solely the start of the whiplash.
April 14: Musk presents to purchase the entire firm
In an SEC submitting and accompanying tweet, Musk stated he would purchase out stockholders in a money deal valued at $43 billion and take Twitter non-public. The supply is $54.20 a share, a 54% premium over the worth when he began constructing his stake in January. The quantity can also be an obvious (and not-very-subtle) reference to Musk’s failed bid to take Tesla non-public in 2018 for $420 a share — and, after all, to a particular quantity in pot tradition. He described the Twitter supply as his “greatest and closing” one.