Tesla CEO will not be joining the board of Twitter after all, the company announced over the weekend.
Musk had been invited to join the board after becoming the company’s biggest shareholder with a 9.2% stake, worth $2.9 billion, in the social network.
On the day the appointment was supposed to take effect, Twitter CEO Parag Agrawal said Musk had changed his mind. Agrawal didn’t say why the decision had been taken, but said it was “for the best.”
In a note to employees shared publicly on Twitter, Agrawal said: “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 all 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.
“We announced on Tuesday that Elon would be appointed to the Board contingent on a background check and formal acceptance. 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 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.”
Speculation suggests Musk’s decision may have been rooted in a limit on the amount of shares he could eventually own, if he took the seat on the board.
The agreement would have prohibited Musk from owning any more than a 14.9% stake in Twitter and it’s possible turning down the seat on the board might signal his ambitions to assert greater influence through greater ownership.
Musk’s influence was, apparently, quickly felt with the announcement the company was working on an edit button, after Musk floated the idea in a poll. The company, however, said been in the works for years.