Following takeover, Elon Musk dissolves the Twitter board, becomes sole director

    TheMorningCrypto Desk
    TheMorningCrypto Desk
    Published on November 1, 2022 2:54 PM

    Updated on January 26, 2023 11:31 AM

    Nine Twitter board members lost their positions as a result of Elon Musk's acquisition, according to an SEC filing.
    Following takeover, Elon Musk dissolves the Twitter board, becomes sole director

    California: Twitter announced in a security filing on Monday, October 31, that CEO of Tesla Elon Musk, who completed the USD 44 billion acquisition of Twitter last week and assumed control of the micro-blogging platform, had dissolved the board and been named the sole director of the company.

    The "consummation" of Musk's takeover of Twitter, according to an SEC filing from October 27th, included the removal of Twitter's board members, including Bret Taylor, Parag Agrawal, Omid Kordestani, David Rosenblatt, Martha Lane Fox, Patrick Pichette, Egon Durban, Fei-Fei Li, and Mimi Alemayehou. The corporation said that these 9 people will no longer hold board positions. 

    Elon Musk became the sole director of the company "in accordance with the terms of the Merger Agreement," the company told the Securities and Exchange Commission.

    The arrangement was "just temporary," the Tesla CEO later stated in response to a Twitter user. In the past, Musk has stated that the platform he owns will prioritize free expression, the eradication of spam bots and bogus accounts, an edit feature, and potentially even cryptocurrency payments.

    As TMC recently reported, since taking over Twitter, Elon Musk wants to start charging users for the coveted "blue check" that indicates verified status. Unnamed sources and internal correspondence claim that Musk plans to increase the monthly cost of Twitter Blue from $5 to $20 and add identity verification to the list of capabilities. Verified users would have 90 days to become members or risk losing their blue checkmark.

    A blue checkmark indicating that the person behind a profile is who they claim to be has become a desired status indicator on Twitter, a well-liked social messaging site used by politicians, journalists, and celebrities. On Sunday, October 30, team members were told that failure to implement the feature by November 7 would result in termination.

    Not to mention, Twitter CEO Parag Agrawal and finance chief Ned Segal left the company's San Francisco offices after the anticipated Twitter deal was closed, and the Tesla CEO fired the company's top executives. Musk stated in a tweet that the content moderation policies have changed. "A content moderation council with widely diverse viewpoints. No major content decisions or account reinstatements will happen before that council convenes. "The Tesla CEO further raised social media users' suspicions when, soon after acquiring the social networking platform and finalizing the acquisition, he wrote on his account, "Let the good times roll."

    Furthermore, Musk quickly cast doubt on his willingness to uphold the deal, claiming that the business had not fully disclosed the volume of spam and phony accounts using the site. Elon Musk, who had previously expressed interest in purchasing Twitter, abruptly ended the agreement in July. The Tesla CEO said that by exaggerating the quantity of spam and false bot accounts on its network, Twitter had broken the terms of their mutual purchase agreement.

    The next week, Musk declared that he would proceed with the purchase of Twitter at the initially set price of USD 54.20 per share. However, the judge presiding over the issue has postponed the Twitter transaction legal procedures until October 28.