Elon Musk Makes a U-Turn on His Decision to Join Twitter Board

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Elon Musk has had an eventful week with Twitter. First, news broke out that the Tesla founder invested in the company and bought a 9.2% stake, which was larger than anyone else. Second, after posting a few polls and posts on Twitter following the major investment, the CEO of Twitter, Parag Agrawal, announced that Elon was being brought to the board of Twitter.

Now in the latest turn of events, Parag Agrawal has announced that Elon will no longer become a part of the board on Twitter. He also mentioned that the board and himself were looking forward to Elon becoming a fiduciary and acting in the best efforts of the company, but the morning that his appointment was to come into action, Elon decided to back out. Check out the statement by Parag Agrawal about Elon backing out from the board of Twitter below:

Team,

Elon Musk has decided not to join our board. Here’s what I can share about what happened. 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 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. 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.

There will be distractions ahead, but our goals and priorities remain unchanged. The decisions we make and how we execute is in our hands, no one else’s. Let’s tune out the noise, and stay focused on the work and what we’re building.

Elon has decided not to join our board. I sent a brief note to the company, sharing with you all here. pic.twitter.com/lfrXACavvk

— Parag Agrawal (@paraga) April 11, 2022

Many feel that this decision has been made due to the one of the policies that does not allow the board members to own more than an 14.9% stake in the company. Many have also been stating that this decision might be made so that the Tesla CEO could try an activist takeover in the future. Figuring what Elon wants to do with such a large stake in the company is not an easy task, people will just have to wait and see what Elon announced in the coming days or weeks.

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