At the beginning of the month, Elon Musk announced that he has purchased a major stake in Twitter. Musk is now the company’s largest shareholder taking on 9.2% of the company and spending approximately $3 billion USD.
Following the announcement, Twitter CEO Parag Agrawal tweeted that while the board has appointed Musk, he has declined the offer, “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.”
The news arrives a week after Twitter has filed plans to appoint the Tesla and SpaceX CEO to its board for just one term which ends in 2024. In order for Musk to have the option of joining the board, Musk agreed that he would not acquire more than 14.9% of the company’s shares if he holds a board position. However, now that he has not joined the board, Musk is no longer bound to these agreements.
After the announcement of Musk’s involvement, Twitter’s stocks surged. There is currently no official reason given as to why Musk has declined joining Twitter’s board.
