In Elon Musk’s Twitter bid, a job for CEO Parag Agrawal’s spouse

Vineeta Agarwala is normal accomplice at Andreessen Horowitz

A transfer by Andreessen Horowitz to affix Elon Musk’s bid for Twitter Inc. threatens to create a battle for firm co-founder Marc Andreessen, who sits on the board of social networking rival Meta Platforms Inc.

Andreessen Horowitz agreed to speculate $400 million within the Twitter acquisition settlement, a part of $7.1 billion in new funding commitments introduced Thursday. That put considered one of Fb’s largest early backers, which modified its title to Meta final 12 months, into changing into a brand new proprietor of Twitter.

Firm co-founder Ben Horowitz stated in a tweet that Musk might have been the one individual on this planet with the “braveness, genius and expertise” to unravel Twitter’s issues and “construct the general public sq. all of us hoped for.” and earn.”

Andreessen Horowitz’s involvement has raised questions in regards to the VC agency’s ties to Meta, the place Marc Andreessen has been a board member since 2008. Whereas it isn’t unusual for Silicon Valley buyers to have a hand in competing startups, potential conflicts might be extra critical with traded corporations, stated John Coates, a professor at Harvard Regulation Faculty.

“It is protected to say that Silicon Valley norms about battle — the place they’re usually tolerated and even inspired, in an ‘every thing comes out within the wash’ tradition — are harmful to hold over to the world of the general public,” he stated.

A consultant for Andreessen Horowitz stated it plans to hunt authorized recommendation to make sure compliance with the foundations round sharing Twitter info with the corporate.

Andreessen, 50, has come underneath scrutiny for previous potential conflicts at Meta, resembling investments in corporations — together with Oculus VR — that Fb ultimately purchased. At one level, he was sued by buyers for advising Meta Chief Govt Officer Mark Zuckerberg on tips on how to shield his majority voting rights, even when he offered his shares.

On Twitter, Andreessen publicly helps Musk and denounces content material moderation insurance policies at social media corporations. Musk has stated he plans to loosen up the foundations if he takes cost of Twitter.

For the reason that investor is not on Twitter’s board, his connection to Meta won’t be a difficulty, stated David Larcker, a professor at Stanford College. “Whereas I do not know a solution to discover out from public information, I believe many executives and board members commerce their rivals’ shares,” he stated.

Twitter, whereas a lot smaller than Fb, is taken into account a Meta rival, competing for digital promoting {dollars} and person posts. When the Twitter board was evaluating whether or not to simply accept Musk’s supply, they appeared on the current drop in Meta’s valuation as a part of their deliberations, based on an individual accustomed to the matter. They ultimately got here to the conclusion that the billionaire’s supply was affordable.

Andreessen is not the one accomplice at his enterprise agency whose current relationships may turn into extra sophisticated after Musk’s deal closes. Vineeta Agarwala, a normal accomplice at Andreessen Horowitz who invests in biotech and medical corporations, is married to Twitter CEO Parag Agrawal. It is unclear whether or not Agrawal will stay underneath Twitter as CEO as soon as Musk takes over, however Musk has beforehand stated he made his supply on Twitter partially as a result of he lacked confidence within the firm’s present management.

On Thursday, CNBC reported that Musk plans to take over as CEO for a short while after the deal closes.

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