In the age of unpredictability, Elon Musk is continuing to shake up the table. Last week, it was reported that Musk was set to join Twitter’s Board after becoming the social media giant’s largest shareholder. Today, that’s no longer the case.
As reported by CNN Business, Twitter’s CEO – Parag Agrawal – tweeted the announcement Sunday.
“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,” Agrawal said in the tweet. “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.”
Becoming a member of Twitter’s board meant that Musk would have needed to cap his overall ownership of the company at 14.9% while a board member and 90 days after his departure according to disclosed terms by Twitter. In a regulatory filing with the Security and Exchange Commission, Twitter stated the now-defunct board appointment was set for a term that would have ended in 2024.
Agrawal has since stepped in to urge the company and its partners that Twitter is strong and the work will continue.
“I believe this is for the best,” Agrawal said in a note to staff shared in his tweet. “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.”
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
All of this movement comes on the heels of Musk being critical of Twitter and its use of free speech and attempt to make changes as a board member.
Free speech is essential to a functioning democracy.
Do you believe Twitter rigorously adheres to this principle?
— Elon Musk (@elonmusk) March 25, 2022
NPR reports, that despite Musk’s alleged excitement to shake things up as a board member, this move could mean that Musk has more controversial plans for the company.
Analyst Dan Ives of Wedbush Securities suggests that Musk could, for example, partner with a private equity firm to buy more stake in the company as an attempt to make “major strategic changes” or even a sale, Ives explained.
“In our opinion, the Twitter board and Musk could not come to an agreement around Musk’s communications with the public (various polls) over Twitter as he likely needed to take a more back seat/quiet stance as part of joining the board,” Ives said.
We will be on standby to watch what comes next with Elon and Twitter.