Tesla and SpaceX CEO Elon Musk has rejected his plans to join the board of Twitter, his social network of decision.
Twitter CEO Parag Agrawal declared publicly on Sunday that Musk stays the biggest shareholder of Twitter, and the organization will stay open to his feedback.
Elon Musk informed Twitter on Saturday morning that he wouldn’t take the board seat. “Elon has decided not to join our board,” Twitter CEO Parag Agrawal tweeted. “I sent a brief note to the company, sharing with you all here.”
Elon Musk, a pundit who recently blamed Twitter for smothering free speech, recently bought a 9.2% stake in Twitter, having purchased 73.5 million offers for generally $2.9 billion.
“The Board and I had many discussions about Elon joining the board, and with Elon directly,” Agrawal wrote in the note to employees. “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 continent on a background check and formal acceptance,” the CEO continued. “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. I believe this is for the best.”
Elon Musk’s appointment would have begun on Saturday, “contingent on a background check and formal acceptance,” as indicated by Agrawal.
“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,” he wrote.
The Twitter CEO didn’t say whether Elon Musk gave specific reasons for changing his perspective about taking on the new commitment.
“We have and will always value input from our shareholders whether they are on our Board or not,” Agrawal continued. “Elon is our biggest shareholder and we will remain open to his input.”
The CEO finished up his note by asking representatives to overlook “distractions,” to “tune out the noise, and stay focused on the work and what we’re building.”
After Elon Musk’s 9.2% stake in the organization, he made a Twitter poll to find out if the organization ought to add an alter button, a long-demanded feature. The cheeky “yes” option won with 73.6% of the votes.
Empowering Twitter representatives to stay focused, Agrawal said, “There will be distractions ahead but our goals and priorities remain unchanged.”
On April 5, Elon Musk and Twitter said he would join Twitter’s board. A day sooner, the Tesla CEO and the world’s richest person revealed through financial filings that he’s the social media organization’s greatest shareholder.
Twitter’s stock hopped 4% on Tuesday following the board declaration. On Monday, after Musk’s stake was at first uncovered, Twitter had its greatest day since the organization’s IPO in 2013, skyrocketing over 27%.
A financial filing from Twitter determined that as long as Elon Musk served on its board, he would be restricted to possessing something like a 14.9% stake in the organization’s common stock outstanding, including through derivative securities, swaps, or hedging transactions.
Musk could theoretically expand his 9% stake past that limit now.
Throughout the weekend, without uncovering that he had turned down the board seat at Twitter, Elon Musk posted various plans to change the social media organization and its products.
One of the ideas was a coarse joke as a Twitter poll. Musk requested that individuals vote on whether Twitter ought to drop the “w” from its name. Doing so would transform Twitter into “titter,” an inference to female anatomy.
More serious ideas from Elon Musk included letting Twitter Blue subscribers pay with dogecoin, get an “authentication” checkmark, and keep Twitter Blue free of ads.
“Everyone who signs up for Twitter Blue (ie pays $3/month) should get an authentication checkmark,” Musk wrote. “And no ads. The power of corporations to dictate policy is greatly enhanced if Twitter depends on advertising money to survive.”
Elon Musk likewise proposed that Twitter ought to transform its headquarters office in San Francisco into a homeless shelter, “since no one shows up anyway.”
Elon Musk’s competitor and fellow centi-billionaire, Jeff Bezos, tolled in. Bezos said Twitter could transform a portion of its office into an asylum. “Worked out great and makes it easy for employees who want to volunteer,” he said sharing a story regarding a comparable initiative at Amazon.
Twitter allegedly set up its plan with Musk so he can’t own 15% of the organization while sitting on its board. The Tesla CEO’s decision to step off the board brings up issues about that plan.
“Elon joining Twitter’s board was contingent on him agreeing not to buy more than 15% of Twitter. Now he’s not joining the board. So does that mean he can he [sic] buy as much of Twitter’s outstanding stock as he wants?” New York Focus Managing Editor Peter Sterne asked on Twitter.
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