Elon Musk makes U-turn; will not join Twitter's board
Elon Musk, who recently disclosed a 9.2% passive stake in microblogging platform Twitter, has decided not to join its board. The CEO of Twitter, Parag Agrawal has announced that Musk will remain the company's biggest shareholder and that the firm will be open to his suggestions. Musk has already proposed many changes to Twitter's subscription service, including the option to pay in Dogecoin.
Elon has decided not to join our board. I sent a brief note to the company, sharing with you all here. pic.twitter.com/lfrXACavvk— Parag Agrawal (@paraga) April 11, 2022
- Elon Musk's stake in Twitter is worth $2.89 billion and he has four times more equity than Jack Dorsey, the co-founder of the microblogging platform who owns around 2.25%.
- We don't know why Musk has denied having a seat on Twitter's board. However, joining would have prevented him from owning more than 14.9% of the company, according to the filing as seen by NewsBytes.
In a note, Parag Agrawal said, "We announced on Tuesday that Elon would be appointed to the Board contingent on a background check and formal acceptance." "Elon's appointment was to become officially effective 4/9, but Elon shared that same morning that he will no longer be joining the board. Elon is our biggest shareholder and we will remain open to his input."
When Elon was set to join the board, Agrawal had said, "He's (Musk) both a passionate believer and intense critic of the service which is exactly what we need on Twitter, and in the boardroom, to make us stronger in the long-term." In response, Musk had tweeted: "Looking forward to working with Parag and Twitter board to make significant improvements" in the coming months.
Ever since Musk disclosed his stake in the micro-blogging platform, he has already tweeted several ideas related to the firm's improvement. These include a poll on whether Twitter should have an edit button, suggestions like including verification checkmarks and payment via cryptocurrency for the Twitter Blue subscription service, and converting the company's headquarters in San Francisco into a homeless shelter.