Twitter Still Has The Power To Ban Elon Musk, But Does That Matter?
Twitter states that Elon Tesla’s ownership and his position on the company’s Board of Directors do not give him the ability to make decisions or influence the company’s day-to-day operations. SpaceX and Tesla CEO Musk has not been shy about expressing his disapproval of the moderation policies on popular social media sites like Twitter. Musk had publicly discussed investing in a new social networking site that he thought was appropriate for his needs shortly after acquiring an ownership stake in the company. This wouldn’t be the first time a wealthy entrepreneur has used their resources to not comply with corporate policies. Former President of the United States Donald Trump spent resources to create Truth Social, an alternative social media platform designed in response to Trump’s Twitter ban.
Musk disclosed Monday, April 4, 2022, through a U.S. Securities and Exchange Commission filing, that she had purchased 73.486,938 Twitter shares, equivalent to 9.2 percent of the company’s stock. Although his shares are listed as passive stakes, it is possible that they could be converted to an active stake down the line. It is reasonable to expect Musk’s influence to be strong, given that he owns almost ten percent of Twitter.
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Twitter stated to dispel any fears that Musk might alter the company’s policies to suit his needs. Parag Agrawal, the current CEO of Twitter, announced that Musk would be a class II member of its Board of Directors after it was confirmed that Musk had purchased a stake in Twitter. It is evident that Musk has the most significant stake in the company and is currently one of its directors. This raises the question of how much influence he’ll have on the company’s decisions. According to Twitter spokesperson Adrian Zamora, “Our policy decisions do not come down from the Board or shareholders.” “Our day-to-day operations and decisions are made Twitter management and employees,” the statement suggests that Musk’s Twitter policy has been made public. Still, the terms of service for the platform will likely stay the same.
Is Musk’s influence limited by Twitter?
Musk, as part-owner, will not be exempted from the company’s terms of service or other policies. Zamora stated that Twitter is “committed impartiality in developing and enforcing its policies and rules.” It’s difficult to imagine that Musk’s company policies would apply to him as an ordinary user. Musk has not been shy about his visions for different industries, including participation in the self-driving vehicle market and space travel. It’s not clear how Musk might implement his image in the company’s operations, given that he has a large share of Twitter.
The plans of Musk to purchase an ownership stake at Twitter are the subject of intense debate. There are many theories as to how he will do this. According to a Forbes Report, Musk is the wealthiest person globally and throughout human history. This means that the tech mogul has enough capital to invest in many companies. Musk bought shares in Twitter, which he had publicly criticized, is not a coincidence. While the social media site tried to dispel concerns about Musk’s power to influence its policies and daily operations, it is difficult to ignore the immense power he holds in this position. Musk, as a director, is responsible for advising and evaluating company executives.