Billionaire entrepreneur, Elon Musk, has reportedly decided not to join the board of Twitter, the social media giant’s CEO, Parag Agrawal, has announced through a tweet yesterday.
The billionaire’s appointment to the board was due to come into effect last weekend after it was revealed that Musk has bought a 9.2% stake in the platform.
However, on Monday, Agrawal tweeted that Musk, who is the largest shareholder of Twitter, has decided not to join the board, but the firm will be open to his input.
Over the weekend, Musk suggested changes in the platform’s premium subscription service Twitter Blue, such as reducing its price, getting rid of advertising, and offering the option to pay via dogecoin.
Agrawal said that Musk was offered a seat on Twitter’s board as the firm believed it to be the best path forward, with board members acting in the best interests of the firm as well as its shareholders.
Addressing SpaceX boss’ decision to decline, Agrawal stated that he believes it was for the best.
Agrawal added that Twitter has and always will value input from its shareholders, whether they are members of the board or not.
Elon Musk is currently the largest shareholder of Twitter, having four times the stake of its co-founder Jack Dorsey of 2.25%.
Following the news of Musk’s purchase of a stake in the platform, shares of Twitter rose by over 27% last week.
However, several employees at the firm felt disgruntled by the news. As per company insiders, there had been anxiety regarding the impact Musk would have had on Twitter’s ability to moderate content in the future.
James Clayton, North America Technology Reporter at BBC, explained that Musk’s appointment to the board would have left everyone pleased, as, in exchange for the seat, Musk had agreed not to buy more than 14.9% of the platform.
In theory, Clayton said, Musk can easily afford to buy the entire company and his refusal to join the board has left that door open.
Being immensely wealthy and powerful, his unpredictability would have made him a lucrative but potentially dangerous investor, highlighting the point in agreement that he would have to behave in the best interests of the shareholders.
Source credit: https://www.bbc.com/news/business-61063905