The popular entrepreneur and crypto whale Elon Musk recently became Twitter’s biggest shareholder. However, there has been a lot of speculation in the market around the true intention behind this move and how it will shape the future of Twitter.
Not that long ago, Elon tweeted, saying he plans to launch a new social media platform revolving around cryptocurrencies. While there has been no news on a new social media platform, the billionaire did purchase a considerable amount of 9.2% of Twitter’s stock. This decision, in hindsight, does make sense as shaping an existing platform is more doable than creating an entirely new platform.
However, it was also recently unveiled that Elon will not join Twitter’s board of directors, as mentioned by Parag Agarwal, the CEO of Twitter. “Elon shared the same morning that he will no longer be joining the board.” However, experts believe that despite no direct involvement in the board of directors, Musk has a lot of influence on Twitter’s future.
In short, being a director “allows [Musk] to pick up the phone and speak with the management team, There’s not a management team that won’t take that call.” told Zino, technology analyst at CFRA. However, this statement was released before the new release that tells Musk will not be a part of the board.
What does it mean for Twitter?
Musk has been an active user of Twitter for a long time and has, time after time, put out controversial statements that have landed him in trouble. However, the platform has always been an undervalued asset whose performance has been lacking luster since its inception.
But following Musk’s move of purchasing 9.2% of shares of Twitter, the price of the stock has shot up with the best daily gain since 2013. Following Musk’s pursuit, several investors have invested in the social media platform creating a new hype and excitement in the industry.