Mega-entrepreneur Elon Musk informed Twitter CEO Parag Agrawal Saturday that he would not be joining the company’s board of directors—and Agrawal shared the news in a tweet late Sunday. (Adweek)
“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,” Agrawal said in the tweet. “I believe this is for the best.” (CNN Business)
The move capped a whirlwind week at Twitter that had been set off by Musk, 50. On Tuesday, Twitter announced that the billionaire would be appointed to its 11-person board for a term that expires in 2024. The invitation to join the board followed Musk’s accumulating a 9.2 percent stake in the company, making him its largest shareholder. (NYT)
The abrupt reversal over the board seat over the weekend ignited renewed speculation about Musk’s intentions for Twitter since the Tesla Inc. chief executive officer first disclosed he had taken the stake. By not joining the board, Musk is no longer subject to an agreement to keep his stake below 14.9 percent. (Bloomberg)
There was no sign that Twitter was worried that a hostile bid from Musk was imminent. In announcing the development, Twitter disclosed no shareholder rights plan, known as a “poison pill,” that would force dilution if Musk tried to raise his stake above a certain threshold. (Reuters)