An amended regulatory filing with the US Securities and Exchange Commission (SEC) has clarified that while Tesla and SpaceX CEO Elon Musk would not be joining Twitter’s Board of Directors, he may still engage with the social media company’s management on a variety of discussions. Musk would be able to do this “without limitation.”
Musk’s update on his role as Twitter’s single largest shareholder was reflected in an amendment to a Schedule 13D filing, which was dated on Monday, April 11, 2022. As per the purpose of transaction outlined in the document, Musk might acquire and sell additional Twitter shares as he sees fit. Interestingly enough, a seat on Twitter’s Board of Directors would have limited Musk’s stake in the company to 14.9%. But with Musk declining the appointment, he could now acquire more of Twitter.
“The Reporting Person (Musk) holds the Common Stock of the Issuer for investment purposes. Depending on the factors discussed herein, the Reporting Person may, from time to time, acquire additional shares of Common Stock and/or retain and/or sell all or a portion of the shares of Common Stock held by the Reporting Person in the open market or in privately negotiated transactions, and/or may distribute the Common Stock held by the Reporting Person to other entities.
“Any actions the Reporting Person might undertake will be dependent upon the Reporting Person’s evaluation of numerous factors, including, among other things, the price levels of the Common Stock, general market and economic conditions, ongoing evaluation of the Issuer’s business, financial condition, operations and prospects, the relative attractiveness of alternative business and investment opportunities, investor’s need for liquidity, and other future developments,” the amended filing read.
The amended filing also noted that Musk could discuss a variety of key topics with Twitter’s management and Board of Directors. These topics include Twitter’s products and services, possible mergers in the future, and governance issues. The amended filing further highlighted that Musk would be free to express his opinions about Twitter on social media or speak with the company’s executives using the platform.
“From time to time, the Reporting Person may engage in discussions with the Board and/or members of the Issuer’s management team concerning, including, without limitation, potential business combinations and strategic alternatives, the business, operations, capital structure, governance, management, strategy of the Issuer and other matters concerning the Issuer. The Reporting Person may express his views to the Board and/or members of the Issuer’s management team and/or the public through social media or other channels with respect to the Issuer’s business, products, and service offerings.”
Musk’s amended 13D filing could be accessed here.
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