June 30, 2022

Elon Musk has decided not to join Twitter's board, says CEO Parag Agrawal

Elon Musk has decided not to join Twitter’s board, says CEO Parag Agrawal

Tesla CEO Elon Musk, shown here in March, proposed a series of changes to Twitter’s subscription service, including price changes and the option to pay with dogecoin.

Patrick Balloul | AFP | Getty Images

Tesla and SpaceX CEO Elon Musk has abandoned plans to join the company’s board of directors Twitterhis favorite social network.

Twitter CEO Parag Agrawal publicly announced on Sunday that Musk remains Twitter’s largest shareholder, and the company will remain open to his input.

Musk informed Twitter on Saturday morning that he will not, in fact, take a board seat.

Musk’s appointment was to begin on Saturday, “subject to a background check and formal admission,” according to Agrawal.

“We have been enthusiastic about collaboration and clarity about risks. We also believed that having Elon as a fiduciary agent for the company where he, like all members of the Board of Directors, must act in the best interests of the company and all of our shareholders is the best way forward.”

The Twitter CEO did not say whether Musk had given specific reasons for changing his mind about taking on the new commitment.

“There will be distractions going forward but our goals and priorities remain unchanged,” said Agrawal, who encouraged Twitter staff to stay focused.

On April 5, Elon Musk and Twitter said it would be Join the Twitter board. The day before, the CEO of Tesla and the world’s richest person revealed through financial filings that he is the social media company’s largest shareholder.

Twitter stock jumped 4% Tuesday after the board’s announcement. On Monday, after Musk’s share was initially revealed, Twitter had best day Since the company went public in 2013, it has jumped more than 27%.

financial deposit from Twitter Musk specified that as long as he serves on its board, he will be limited to owning no more than 14.9% of the existing company’s common stock, including through derivative securities, swaps or hedging transactions.

Musk could theoretically increase his 9% stake beyond that limit now.

Over the weekend, without revealing that he declined a board seat on Twitter, Musk posted a number of ideas for transforming the social media company and its products.

One suggestion was a blunt joke in the form of a Twitter poll. Musk asked people to vote on whether Twitter should remove the “w” from his name. Doing so will turn Twitter into a ” grudge,” a reference to female anatomy.

It included more serious suggestions from Musk to allow Twitter Blue Subscribers pay with Dogecoin, Get the “authentication” checkmark, and keep Twitter Blue ad-free.

“Everyone who subscribes to Twitter Blue (i.e. pays $3 a month) should get a check mark for authentication,” Musk wrote. “And there are no ads. The power of companies to dictate policy is greatly enhanced if Twitter relies on ad money to survive.”

Musk also suggested that his Twitter office turn his San Francisco headquarters into a homeless shelter, “since no one showed up anyway.”

Musk’s rival and fellow billionaire Jeff Bezos participated. And Bezos said Twitter could turn part of his office into a shelter. “It has worked great and makes it easy for employees who want to volunteer,” he said, sharing a story about a similar initiative at Amazon.

Correction: This story has been updated to correct the date Twitter and Elon Musk said he would be joining the Board of Directors.