In a surprising turn of events, the CEO of Tesla – Elon Musk will no longer be joining Twitter’s board as previously reported. Twitter’s Chief Executive Officer Parag Agrawal made the announcement during the late hours of Sunday. The CEO had earlier stated that the decision to appoint Elon Musk as a member of Twitter’s board has come after engaging the billionaire for a few weeks.
Elon Musk owns the largest stake in Twitter. In Twitter’s 13G filing, the company indicated that Elon Musk owned a passive stake in the company and isn’t trying to gain control over Twitter. Another filing that followed about 24 hours later, a 13D, confirmed that the billionaire wanted to be more active in Twitter’s operations and showed that Elon Musk owns 73,115,038 Twitter shares which translates to 9.1 percent of Twitter, as of last week Tuesday’s close.
Elon Musk should have become a member of Twitter’s seat on Saturday but the billionaire influencer tuned down the seat that same Saturday. He is still listed as a Twitter board member as the company’s investor page has not been updated.
A Sunday tweet from Twitter’s CEO reads “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 morning that he will no longer be joining the board.”
“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,” he added.
In what is being tagged an official response from Elon Musk, the Tesla and Space X CEO tweeted an already deleted tweet that had just a single emoji which means that one was either shocked or surprised.
If he had joined Twitter’s board, Elon Musk would have only been able to own a 14.9 percent stake in Twitter while he served or 90 days after serving on the board. He also would have been on the board till the year 2024. Jack Dorsey, the founder of Twitter, has tweeted after the announcement of Elon Musk joining Twitter board that “I’m really happy Elon is joining the Twitter board! He cares deeply about our world and Twitter’s role in it. Parag and Elon both lead with their hearts, and they will be an incredible team.” The founder is yet to say anything about the latest development.
“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,” Twitter’s CEO said in another Sunday tweet.