Elon Musk, CEO of Tesla and SpaceX, will not join Twitter’s board of directors, Parag Agrawal, the company’s president, revealed late Sunday night.
Elon Musk recently purchased a 9.2 percent stake in the firm for more than $3 billion.
What are the details?
“Elon has made the choice not to join our board,” Agrawal said in a post on Twitter. “I sent a small note to the firm, sharing this with you all,” he added.
“The board and I had many conversations about Elon joining the board, as well as with Elon himself. We were looking forward to working together and being clear on the risks. We also felt that having Elon on the board in his capacity as a fiduciary who is obligated to act in the best interests of the Twitter and all our shareholders was the most appropriate course of action. The board made him an offer.”
“We announced this Tuesday that Elon would join the board if his background check and formal acceptance had been completed. His appointment to the board was set to become effective April 9, but Elon informed us later that same day that he would not be joining the board. I feel it is best for everyone concerned.”
“We welcome input from all of our shareholders, whether they happen to be on our Board or not,” he said. Elon Musk is Twitter’s largest shareholder, and we will continue to be receptive to his advice.
You can read the full statement below.
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
The decision not to join Twitter’s board, according to the New York Times on Monday, will also “release Mr. Musk from any other agreement he had previously signed with the company.”
According to Business Insider, “He had agreed not to acquire more than 14.9 percent of Twitter’s stock and takeover the firm” under a “standstill” agreement last week. This implies Mr. Musk could still add to his position in the company.
Elon Musk hasn’t yet weighed in on the decision or what it implies for any future collaborations with Twitter at the time of this writing.