Elon Musk will not be joining the board of directors of Twitter, Twitter CEO Parag Agrawal revealed in a statement to the business. Agrawal stated last week that Musk would be named to the board of directors following his acquisition of 9.2 percent of the company’s stock, but now says Musk has decided not to accept the position.
Agarwal states, “On Tuesday, we announced that Elon would be named to the Board of Directors pending the completion of a background check and formal acceptance”. “Elon’s appointment to the board was scheduled to take effect on 4/9, but Elon announced that morning that he would be resigning. This, I believe, is for the best. We have always valued shareholder input, regardless of whether they are on our Board of Directors. Elon Musk is our largest shareholder, and we will always be receptive to his input”.
By joining Twitter’s board of directors, Musk would have been prohibited from holding more than 14.9% of the firm. When Musk’s purchase became public, his stake in Twitter was valued at $2.89 billion. By joining Twitter’s board of directors, Musk would have been prohibited from holding more than 14.9% of the firm. When Musk’s purchase became public, his stake in Twitter was valued at $2.89 billion.
Since Musk’s Twitter investment was exposed, the Tesla and SpaceX CEO has been publicly tweeting about his company’s plans — though, as is customary with Musk, it’s difficult to tell when he’s being serious. He put up a poll the day before Twitter announced that it would be adding an edit button, which had been a long-sought feature. Later that day, he tweeted suggestions including adding verification checkmarks to the paid Twitter Blue service or turning Twitter’s San Francisco headquarters into a homeless shelter “because no one shows up anyway.”
This is what Agarwal’s full message included.
Elon Musk has decided not to join our Board. Here’s what I can share about what happened.
The Board and I had many discussions about Elon joining the board, and with Elon directly. We were excited to collaborate and clear about the risks. We also believed that having Elon as a fiduciary of the company where he, like all board members, has to act in the best interests of the company and all our shareholders, was the best path forward. The board offered him a seat.
We announced on Tuesday that Elon would be appointed to the Board contingent on a background check and formal acceptance. Elon’s appointment to the board was to become officially effective 4/9, but Elon shared that same day that he will no longer be joining the board. I believe this is for the best. We have and will always value input from our shareholders whether they are on our Board or not. Elon is our biggest shareholder and we will remain open to his input.
There will be distractions ahead, but our goals and priorities remain unchanged. The decisions we make and how we execute is in our hands, no-one else’s. Let’s tune out the noise, and stay focused on the work and what we’re building.
