Elon Musk's new assignments: Twitter CEO or complaint hotline operator?

November 1, 2022  10:13

Elon Musk used to be referred to as Chief Twit and claimed to have no idea who the CEO of Twitter was. However, a signed document that Musk sent to the U.S. Securities and Exchange Commission (SEC) showed that Twitter did have a CEO. And it's... Elon Musk.

Moreover, as it became known to mass media, Musk nullified Twitter's 9-member board of directors and became the company's sole director. Meanwhile, on his Twitter account, he said he was a hotline operator for complaints.

A document sent to the Security and Exchange Commission also showed that from April 11 until Oct. 4, Musk bought stakes in Twitter almost monthly - even during the period when he argued with the company's management about the number of bots on the social network and said he was backing out of the deal.

Meanwhile, Twitter co-founder Jack Dorsey kept his stake in the company (2.4%, more than 18 million shares worth about $1 billion). However, Saudi Arabia's Crown Prince Al-Waleed bin Talal Al Saud (who also owns the holding company that controls a large stake in Twitter) turned out to be the company's second-largest shareholder. Senator Chris Murphy was concerned about this fact and called on the Committee on Foreign Investment to analyze the deal of Elon Musk with Twitter for the presence of threats to national security.

According to media reports, Twitter will become a private company and has already begun delisting from the NYSE stock exchange: since November 8, its shares will no longer be traded on public markets. Turning the company into a private one may give some advantages to Musk. In particular, the company will no longer need to publish statements, and there will be less attention from regulators. But on the other hand, Musk will have sole control over the management of the company, completely change Twitter - both content and financing, and he may not consider the interests of investors.

However, it is unlikely that Musk will remain the sole head of Twitter for long. Most likely, soon he will choose a new board of directors - from among investors and people close to him.

On October 28, 2022, Elon Musk officially bought Twitter for $44 billion. He immediately fired all of the company's management and tweeted that the bird is now freed.

Less than 24 hours after completing the $44 billion acquisition of Twitter, he decided to change the homepage and raise the monthly fee for verified pages.

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