Days after becoming the largest shareholder of microblogging site Twitter, SpaceX and Tesla CEO Elon Musk has decided not to join the company’s board, Twitter’s CEO Parag Agrawal informed shareholders and employees through a letter on Monday.
The letter which Agrawal also shared on his Twitter handle, states, “Elon Musk has decided not to join our board. Here’s what I can share about what happened. The board and I had many discussions about Elon joining the board and with Elon directly. 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
Notably, on April 5, Twitter Inc announced that Musk will be joining the company’s board of directors, a day after taking a 9.2 per cent stake or 73.5 million shares of common stock in Twitter.
“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 inputs from our shareholders whether they are on our Board or not. Elon is our biggest shareholder and we will remain open to his input,” Agrawal said in the letter.
On Sunday, Musk, who is also a power Twitter user, had suggested a slew of Twitter upgrades sparking speculations of his more proactive role as a board member. Earlier, in many instances, Musk has said that he is giving “serious thought” to building a new social media platform. After taking a majority stake in the company on April 4, Musk said that he is looking forward to making “significant improvements to Twitter in coming months!”
Musk's stake in Twitter is considered a passive investment, which means Musk is a long-term investor that's looking to minimize his buying and selling of the shares.