Tesla boss Elon Musk recently bought a majority stake in social media platform Twitter.
Tesla and SpaceX CEO Elon Musk has decided against joining Twitter’s board, according to the social media platform’s CEO Parag Agrawal. The Twitter boss announced this latest development a few hours ago.
This latest development comes after Elon Musk told his followers that he will not be joining Twitter’s board despite his recent investment in the company. Agrawal said;
“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.”
Musk’s entry into Twitter’s board would have begun on Saturday had he accepted the invitation and underwent a background check. The Twitter boss didn’t specify if there were reasons why Musk declined to join the company’s board.
Agrawal encouraged Twitter’s employees to remain focused despite the distractions that lay ahead for the company.
Earlier this month, financial statements revealed that Elon Musk became the social media company’s biggest shareholder.
Musk might have opted against joining Twitter’s board because doing so would limit him from owning no more than a 14.9% stake in the company’s common stock outstanding, including through derivative securities, swaps, or hedging transactions.
However, by not joining the board, Musk can increase his stake in the company beyond the current 9%.
Musk has some ideas to transform Twitter and he made this known over the weekend. He said;
“Everyone who signs up for Twitter Blue (ie pays $3/month) should get an authentication checkmark,” Musk wrote. “And no ads. The power of corporations to dictate policy is greatly enhanced if Twitter depends on advertising money to survive.”
Musk further suggested that Twitter turns its San Francisco headquarters into a homeless shelter since its workers now work from home.
