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Plans for entrepreneur Elon Musk to join the board of Twitter have been shelved in a U-turn made just a week after he became the social media firm’s biggest shareholder.
The SpaceX and Tesla chief was nominated as a board member last week after buying a major stake in the social media firm, with Musk expected to take his seat in the near future.
However, an announcement from Twitter CEO Parag Agrawal revealed a reversal. He tweeted. “Elon has decided not to join our board,”
“Elon’s appointment to the board was to become officially effected 4/9, but Elon shared that same morning he will no longer be joining the board,” Agrawal said. “I believe this is for the best.”
Last week, Musk bought 9.2% of Twitter’s common stock which sent Twitter’s shares soaring 25%.
Following the purchase, Agrawal initially announced that Musk would be joining the board, describing him as a “passionate believer and intense critic of the service which is exactly what we need.”
Musk tuned in saying that he was “looking forward to working with Parag & Twitter board to make significant improvements to Twitter in coming months!”
When it was believed that Musk would be part of the board, it was agreed that he would limit his Twitter stake to a maximum of 14.9%. Now, in theory, he could increase his stake beyond that.
Parag added in his recent announcement that he and Twitter “will always have 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.”
#BeInformed
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