In major reversal, Elon Musk is not joining Twitter board – TechCrunch

Elon Musk, the world’s richest man and Twitter’s largest shareholder, will no longer sit on the social media company’s board, CEO Parag Agrawal said late Sunday, in a surprising reversal following last week’s announcement that Tesla and SpaceX executives had appointed to the panel.

Sunday’s revelation from Agrawal, who said last week that he had been involved with Musk for “a few weeks” before announcing his appointment to the board, following a series of unusual tweets from the chief executive SpaceX over the weekend he wondered aloud to his 80 million followers if Twitter was dying, citing the low frequency of tweets from some of the social network’s most famous personalities.

Musk also asked his followers if Twitter should convert its San Francisco headquarters into a homeless shelter, prompting a discussion that involved many industry figures, including founder of Amazon and Blue Origin, Jeff Bezos. Weekend tweets from Musk – who has identified his investment in Twitter as “passive” and according to a timeline shared by Agrawal, has decided not to join Twitter’s board – however , seems to indicate that he is actively thinking about Twitter and leading conversations about the key steps the company must take.

“We announced on Tuesday that Elon will be appointed to the Board of Directors subject to a formal background check and acceptance process. The appointment of Elon to the board will take effect on September 4, but Elon shared on the morning of the same day that he will no longer be on the board,” said Agrawal. said in a tweet Sunday night.

“We have been and will always value input from our shareholders whether they are on our Board of Directors or not. Elon is our largest shareholder and we will continue to make his contributions public.”

In what appears to be his official commentary on development, the richest man in the world make a statement with one letter in a tweet that has since been deleted, “🤭,” an emoji whose common interpretations include “surprised,” “shocked,” and “liked,” according to Urban Dictionary.

Joining Twitter’s board would require Musk to limit his overall ownership of the social network to a maximum of 14.9% while he remains on the board and 90 days after leaving. go, according to the terms of the agreement that Twitter disclosed. In regulatory records (PDF), Twitter said it plans to appoint Musk to its board for a term ending in 2024.

“I’m really happy that Elon joins the Twitter board! He cares deeply about our world and Twitter’s role in it,” said Jack Dorsey, co-founder and former CEO of Twitter, upon hearing that Musk had joined the Twitter board. “Parag and Elon both lead with their hearts, and they will make an incredible team.” Dorsey has yet to comment on the developments.

Musk has bought 9.2% of Twitter shares, according to a filing he filed earlier this month. Twitter shares jumped as much as 30% on the news that Musk was buying the stock, and another 10% when his appointment to the board was announced the next day.

“The board and I have had many discussions about Elon joining the board, and with Elon in person,” Agrawal said in a tweet Sunday night. “We are excited to cooperate and clarify the risks. We also believe that Elon is a corporate trustee where he, like all board members, must act in the best interests of the company and all of our shareholders. me, is the best way forward. ”

Twitter has 11 board members, including Dorsey, Agrawal, Salesforce co-CEO Bret Taylor, and Silver Lake co-CEO Egon Durban. At the time of publication, Musk was still listed as a board member on its investor relations website.

Elon did not say why he was investing in the company, but the timing of the disclosure prompted him to express concerns about freedom of speech and censorship on Twitter. However, analysts at Bernstein believe that Musk’s interest in Twitter is largely personal.

“He joins more than 15 other billionaires in media ownership, including Bezos with WaPo. We view interest as a potential distraction for Musk and TSLA shareholders, given Musk’s alleged over-commitment and enthusiasm for the subject of censorship/freedom of speech. very high,” they wrote in a note.

Over the weekend, Musk also suggested that Twitter should consider offering a checkmark to anyone who signs up for the company’s $3 monthly subscription service, Twitter Blue. “And no ads,” Musk said, outlining Twitter Blue’s features. “The power of corporations to make policy would be greatly enhanced if Twitter depended on advertising dollars to survive.”

Some employees were concerned about Musk’s involvement with the company, the report said. To assuage their worries, Agrawal has be reported internally that Musk agreed to a Q&A with them.

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