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Elon Musk Backs Out From Joining Twitter’s Board
Tesla’s founder and CEO, Elon Musk, withdraws from joining Twitter’s board of directors. Parag Agrawal, Twitter’s CEO announced this in a tweet in the early hours of Monday, 11th April.
Elon has decided not to join our board. I sent a brief note to the company, sharing with you all here,” Agrawal tweeted.
Musk was offered a seat on the board a day after he disclosed a 9.2% stake in the company, which made him Twitter’s biggest shareholder. According to Agrawal’s note, Twitter and Elon had many discussions about him joining the board. The note, which didn’t state clearly why Musk reneged, revealed that the prospect of having the billionaire onboard did excite Twitter’s board. The board believed that Musk would have acted in the best interest of the company.
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,” Agrawal’s note read.
He also pointed out that the company is open to input from Musk as a shareholder in the company.
Crypto and Stock Markets React Following Elon’s Decision
Last week, Elon disclosed that he had a 9.2% stake worth about $2.9 billion in Twitter. His stake in the company offered him a seat on the company’s board—which he later declined. Following this disclosure, the crypto market saw temporary spikes, with DOGE increasing by as much as 10%.
The stock market was not left out in this rally as Twitter shares spiked by up to 27%. According to Bloomberg, this was the stock’s biggest intraday gain since the company’s IPO in 2013. Conversely, Twitter shares fell by 8% following Elon’s refusal to join the board.
Elon’s Relationship With Twitter
For Elon, Twitter does not just tickle his fancy. The microblogging platform also serves as a platform where he expresses his opinions and promotes his companies. Fortune notes that Elon has used Twitter to eliminate Tesla’s need for advertising.
[…] Tesla’s main advertising platform is Musk’s Twitter account. Just one tweet from the Tesla CEO can get tremendous news coverage,” they wrote.
However, despite Twitter’s massive benefits to the billionaire, it hasn’t deterred him from criticizing the company. On March 26, Elon took to his Twitter account to criticize Twitter’s free speech principles. Before he rejected sitting on Twitter’s board, some believed that he purchased his stake in Twitter to take action regarding Twitter’s free speech and censorship laws. Large shareholders like Elon usually have a seat on the board and can vote on key company decisions.