Tesla CEO Elon Musk has declined to join Twitter’s board of Directors. This was disclosed by Twitter CEO Parag Agrawal in Tweet on Sunday.
“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 who has been a fierce critic of Twitter, recently became its largest shareholder after he purchased a 9.2% stake in Twitter representing 73.5 million shares value at about $2.9 billion.
He has also accused Twitter of stifling free speech and suggested possible changes to Twitter including making the site ad-free and adding edit button.
“Given that Twitter serves as the de facto public town square, failing to adhere to free speech principles fundamentally undermines democracy,” Musk tweeted on March 26. “What should be done?”
“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.”
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
“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.”
“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.”
It is not yet clear why Musk declined the invitation to join Twitter’s board of directors. However, Twitter reportedly made an arrangement with Musk that he cannot own 15% of the company while sitting on the board.
“A key rule set in place by the agreement is that “so long as Mr. Musk is serving on the Board and for 90 days thereafter, Mr. Musk will not, either alone or as a member of a group, become the beneficial owner of more than 14.9% of the Company’s common stock outstanding at such time.”
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.