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The risks facing X

The risks facing X


Internal documents reveal the dangers facing the company formerly known as Twitter — Elon Musk included.

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Photos of Elon Musk and Linda Yaccarino side by side.
Elon Musk and Linda Yaccarino.
Photos by Jerod Harris, Chesnot, Getty Images

Yesterday, employees at X received a crash course in private equity from the folks at Morgan Stanley, whose Shareworks platform is being used to manage the restricted stock units that Elon Musk has finally begun doling out.

The issuance of new equity, complete with an official stockholder agreement and disclosure statement, marks the beginning of a new chapter in the saga of Twitter’s haywire transformation into X. The old Twitter, a publicly traded company incorporated in Delaware with an independent board of directors, has been dead for a year. In its place now is X Holdings, a private, Nevada-based corporation with one controlling shareholder and a PO box in Austin, Texas.

If the transcript I published of X’s all-hands with Musk and Linda Yaccarino last week wasn’t clear enough, the internal equity documents solidify that Musk, X’s “Principal Stockholder,” calls the shots. He’s the company’s “sole director” who controls all decision-making through a special class of shares. He can hire and fire board members, should he decide to create a board.

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