Musk's appointment could herald a controversial push for 'free speech' and invite more scrutiny from the SEC.
“It’s pretty obvious that Elon is trying to make a play on free speech,” says crypto investor Maya Zehavi, who has held Twitter stock since 2019. “I think he would probably try to leverage his power on the board to make sure that Twitter doesn’t try to apply more restrictive censoring rules than they have to.” That reasoning holds up for Adam C. Johnson, who is a professor of law at the University of Michigan and specializes in corporate and securities law.
Activist shareholders, which we can assume Musk is in this case, generally take their stakes for one of three reasons, says Anil Dash, CEO of software development startup Glitch. They either wade in to split up the company in a move that Dash says wouldn’t make sense for Twitter, to appoint a captive CEO , or to get a dividend for themselves. The latter wouldn’t work, as Twitter doesn’t yet make money.
Twitter spokesperson Adrian Zamora says Twitter is committed to impartiality in the development and enforcement of its policies and rules. “Our policy decisions are not determined by the board or shareholders, and we have no plans to reverse any policy decisions,” Zamora says. “As always, our board plays an important advisory and feedback role across the entirety of our service.” Zamora says day-to-day operations and decisions are made by Twitter management and employees.
of any class of equity security is considered “an insider” by the Securities and Exchange Commission and is subject to much more scrutiny. It’s a policy enforced by Section 16 of the Securities Exchange Act of 1934 and one the SEC is likely eager to investigate after previously slapping Musk on the wrist, accusing him of defrauding investors by tweeting he had secured funding to take Tesla private in 2018 andit brought against him.
Yet other elements of Musk’s new arrangements with Twitter—including his taking a seat on its board—open him up to short-swing
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Elon Musk updates the paperwork on his shocking Twitter purchase to avoid extra SEC dramaA new side gig for the Tesla boss comes with some strings
Read more »
Elon Musk takes 9.2% stake in Twitter, sending share prices soaringTesla CEO Elon Musk acquired a 9% stake in Twitter to become its largest shareholder, just before raising questions about the social media platform’s dedication to free speech and the First Amendment.
Read more »
Elon Musk buys 9.2% stake in Twitter, making him the largest shareholderElon Musk recently purchased 9.2% of Twitter stock, according to a filing, making him the largest shareholder in the company. News of the purchase sent shares of Twitter soaring in early trading.
Read more »
Elon Musk Buys Huge Stake in His Favorite Cursed Toy, TwitterThe tech mogul has incurred the wrath of federal agencies for using Twitter. That didn't stop him from buying a big chunk of it.
Read more »