With board’s dissolution, Elon is ‘sole director’ of Twitter • TechCrunch
Elon Musk is now the master of Twitter’s mansion after the board of directors was dissolved as part of the merger agreement. While the situation likely isn’t permanent, it means that as owner, manager, and “head of Twit,” he has what amounts to the sheer power to hire, launch and change the social media platform.
in the SEC . fileIn this article, the company detailed some of the many changes related to Musk’s controversial purchase of the platform:
[A]As a result of the completion of the merger, Musk became the sole director of Twitter. In accordance with the terms of the Merger Agreement, which is effective as of the effective time of the merger, the following persons, who were directors of Twitter prior to the effective time of the merger, are no longer directors of Twitter: Brett Taylor, Parag Agrawal, Omid Kordestani, David Rosenblatt, Martha Lynn Fox, Patrick Pechet, Egon Durban, and Fey Lee and Mimi Alemayehu.
You may recognize some or all of these names, and the Twitter board was definitely a character in Silicon Valley. But their hour is up and the deal they quarreled over is completed.
This isn’t an unprecedented move in a private takeover of a public company, it’s just part of the process. The board of directors represents the previous shareholders and now these shares are owned by someone else. It is not uncommon for the board of directors to be purged in this way, and for new boards to be installed as a decision-making body and an adjoining advisory body for corporate leadership. Having said that, since examples of private acquisitions at this scale are so few, let alone examples with comparable context, it is difficult to say with any confidence what would be “normal”.
The result, after all, is that Twitter now has what amounts to a dictator, and that dictator is said to be using that power to enact sweeping changes such as company-wide cuts and verification fees.
How Musk intends to structure Twitter’s leadership remains a mystery, perhaps to him like everyone else, but as the sole manager, that is largely his prerogative. It may be that part of the complex and risky financing of the deal entails the installation of certain people (or indeed kingdoms) in positions of real power and responsibility.
Of course Musk doesn’t do all this alone – he is said to have surrounded himself with many close friends and operators who, while lacking any actual power thus far, are no doubt doing their best to sway the only way out.