Elon Musk will not join Twitter’s board of directors, changing course just days after becoming the tech company’s largest shareholder and being offered the seat.
Parag Agrawal, CEO of the social media company, tweeted that Musk should be formally appointed to the board on Saturday after “many discussions” with the board.
But the Tesla boss then announced “that same morning that he would no longer be involved,” said Agrawal, without giving any further details. “I think that’s for the best,” he wrote, adding that the company “would remain open [Musk’s] Entry”.
The reversal comes after the billionaire, a prolific Twitter user with more than 80 million followers, slammed the platform last week, calling for product changes including an edit button and an authentication tick for premium subscribers.
musk wrote“Is Twitter Dying?” in a recent tweet and poll posted ask when the company headquarters in San Francisco is to be converted into a homeless shelter “because nobody shows up anyway”.
After it was announced he would not be joining the board, Musk tweeted an emoji of a face with a hand over his mouth, which is often interpreted as a smirking expression. He did not immediately respond to a request for comment.
News of the entrepreneur’s Twitter stake and appointment to the board of directors was enthusiastically received by investors. Shares rose nearly 30 percent last Monday after a filing with the US Securities and Exchange Commission revealed Musk had acquired a 9.2 percent passive stake. They were up nearly 10 percent in premarket trading the following day when it was announced he would be joining the board.
Musk later resubmitted disclosure of his stake to show his status as an active investor.
But the decision drew unease from some Twitter employees and academics, who warned that Musk, a free speech activist who’s often been cast as a libertarian, could use it to push for weaker content policies. Some questioned whether Twitter’s life ban on former US President Donald Trump would be reversed with Musk on the board.
Analysts also questioned whether Musk’s ambitions would align with rising demands from advertisers, Twitter’s main source of revenue, for less toxic environments on social media platforms.
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Agrawal said the company was initially “excited to work with Musk” but was “aware of the risks,” adding that as a director with fiduciary responsibilities, he must “act in the best interests of our company and all of our shareholders.” .
Musk’s supporters were quick to debate why he decided against taking the board seat. Some said he didn’t want to be put under fiduciary duties, which likely would have meant he would have to rein in his controversial tweeting about the company.
Others pointed out that the filing announcing his appointment said he would only be allowed to hold 14.9 percent of the company’s shares while on the board. Now, they determined, he would be free to establish a larger stake.
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