Twitter said that Elon Musk, the biggest shareholder of the company, won’t join the social media service’s board of directors.
This announcement came a few days after Twitter said that Musk would be appointed to its board which contains 11 people for a term that expires in 2024. Previously, Musk has bought a 9.2 percent stake in the company. That made him its largest shareholder.
But things have changed. Twitter’s CEO, Parag Agrawal, tweeted late Sunday that Mr. Musk told the company he would no longer want to be a board member.
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“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.” Mr. Agrawal said in his tweet.
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
Until now there’s no clear reason was given for the reversal. Although Tesla’s CEO had been tweeting frequently during the weekend, about adding a button and discussing the future of the platform.
He even suggested turning Twitter’s headquarters in San Francisco into a homeless shelter. Because as he said “no one shows up anyway.”
So after Musk’s decision not to join Twitter’s board, he will be no longer bound by a previous agreement he had signed with Twitter. The“standstill” agreement that he signed last week said that he won’t purchase more than 14.9 percent of Twitter’s stock and won’t take over the company. In these cases, the billionaire could now keep adding to his stake in the company.