On Sunday, April 10, Twitter CEO Parag Agrawal tweeted that Elon Musk would no longer be joining the social media company’s board.
This comes less than a week after he became Twitter’s largest shareholder.
Elon has decided not to join our board. I sent a brief description to the company to share with you here. pic.twitter.com/lfrXACavvk
— Paraga Agrawal (@paraga) April 11, 2022
On April 4, Tesla CEO acquired 9.1% of Twitter. The company subsequently announced that he would be appointed to a 12-member board pending background checks and formal acceptance.
This non-top-level position will become official on Saturday, April 9th. That morning, Musk notified Twitter that he would not accept the position. He did not give a specific reason for the change of mind.
This is days after Musk express his excitement Regarding joining the board, tweeted “Looking forward to working with Parag and the Twitter board to make significant improvements to Twitter in the coming months!”
Musk’s Twitter stake no longer limited
Under his agreement for board seats, Musk’s stake in Twitter will be limited to 14.9% or less of common stock during his tenure and for 90 days thereafter.
The position also comes with a fiduciary duty to act in the best interests of the company and its shareholders, and Musk has always open criticism platforms of the past.
By denying the seat, Musk is no longer bound by those requirements. However, as Agrawal noted in a note to the company, “Elon is our largest shareholder and we remain open to his comments.”
Tesla CEO is now free to criticize the platform
On the same day he notified Twitter that he was rejected, Musk suggested For his 81 million followers, the platform may be dying.
exist Two deleted tweets Musk has offered further criticism on Twitter since last weekend.One tweet suggested turning the company’s San Francisco headquarters into a homeless shelter, another suggested everyone who signed up twitter blue A certified check mark should be given.
What does this mean for the future of Twitter?
Musk is no longer limiting the number of shares he can hold, opening the door to a hostile takeover. As the richest man in the world, he has the resources to buy any publicly traded stock.
Following these announcements, Twitter’s share price The stock price has fluctuated wildly, surging 30% after the news of Musk’s acquisition and another 10% when it was announced that he had been appointed to the board. Shares fell as much as 4% in premarket trading on Monday before rebounding slightly after news of his reversal.
Agrawal’s statement hinted that the fallout from Musk’s actions could lead to a split within the company, but he insisted that goals and priorities remained the same.
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