Twitter said Elon Musk has decided not to join its board, a stunning twist to a week-long saga that’s captivated the tech community and touched off renewed speculation about the company’s future.
Musk held “many discussions” with Twitter’s directors but the entrepreneur ultimately declined their offer to take a board seat, CEO Parag Agrawal tweeted. According to the CEO, Musk informed Twitter of his decision on 9 April, the same day he was slated to formally join the board.
“I believe this is for the best,” the Twitter CEO said in an internal memo shared late on Sunday. “There will be distractions ahead, but our goals and priorities remain unchanged.”
The abrupt reversal ignites renewed speculation about Musk’s intentions for Twitter since disclosing he had taken a stake of just over 9% — becoming the social media giant’s largest individual shareholder. If he doesn’t join the board, Musk would not be subject to an agreement to keep his stake at no more than 14.9%.
The billionaire behind Tesla and SpaceX has been vocal about changes he’d consider at the social media platform. Musk wasted no time in appealing to users about prospective moves from turning Twitter’s San Francisco headquarters into a homeless shelter and adding an edit button for tweets, to granting automatic verification marks to premium users.
Musk posted a single emoji after the Twitter CEO’s explanation, a smiling face with a hand over its mouth.
Musk and Twitter executives had been expected to host a town hall for employees this week, though it’s uncertain if that will proceed. Representatives for Musk and Twitter declined to comment.
Musk’s tweets have enthralled the social media sphere since the revelation of his stake. Twitter announced shortly after that the entrepreneur would be joining its board, spurring widespread debate. Several market watchers tweeted that Musk may be staying off the board to avoid potential conflicts of interest in future — were he to consider increasing his stake of Twitter or acquiring it outright.
Musk, CEO of Tesla, is the world’s richest man. He’s also one of the biggest personalities on Twitter and has regularly stirred controversy on the platform.
The billionaire could face scrutiny from US regulators by disclosing his massive stake days later than regulations allow, and because he revealed it in a filing typically reserved for passive investments. Ascending to Twitter’s board so swiftly after the disclosure could have complicated that process.
Musk is already seeking to exit a 2018 deal with the SEC that put controls in place related to his previous tweeting about Tesla.
Let’s tune out the noise, and stay focused on the work and what we’re building
Citing internal company messages, the Washington Post on Thursday reported that some workers in recent days have expressed concern on Twitter’s employee Slack channels that Musk could inflict damage to the company’s culture, as well as make it harder for people to do their jobs.
“Let’s tune out the noise, and stay focused on the work and what we’re building,” Agrawal said in his Sunday memo to employees. — Sarah Frier and Edwin Chan, (c) 2022 Bloomberg LP