New Delhi: Tesla CEO Elon Musk has decided not to join Twitter’s board of directors. Twitter CEO Parag Agarwal has confirmed this. Agarwal said in a statement that he and the company’s board of directors had several discussions with Elon about joining the board.
“We were excited to collaborate and clarify the risks. We also believed that as a subsidiary of Elon Company where he, like all board members, would act in the best interest of the company and all of our shareholders Yes, that was the best way forward. The board offered him a seat,” Agarwal said.
In a brief email to the company, the Twitter CEO said that as the company’s largest shareholder, Elon’s views would be taken into account.
He said, “We announced on Tuesday that Elon would be appointed to the board team upon background checks and formal approval. Elon’s appointment to the board was to take effect officially April 9, but Elon shared the same morning that he would Will no longer be there. Join the board. I believe it’s for the best.”
“There will be distractions ahead, but our goals and priorities remain unchanged. The decisions we take and the way we execute are in our hands, not anyone else’s. Let’s remove the noise, and focus on the work and what we are creating,” Agarwal added in his post.
Joining Twitter’s board would have prevented Musk from owning more than 14.9 percent of the company.
Also, the way Musk freely tweets on controversial topics could put Twitter in a catch-22 situation in the near future on whether to act on his tweets.
Since the announcement, Musk has shared several polls on Twitter detailing key changes to the platform, including an edit button, which is now under development.
Agarwal posted last week, “I am excited to report that we are appointing @elonmusk to our board! Through conversations with Elon in recent weeks, it has become clear to us that he is on our board. will bring great value to you.”
Musk replied to Agarwal: “Hope to work with Parag and the Twitter Board to make significant improvements to Twitter in the coming months!”
According to a recent filing with the US Securities and Exchange Commission (SEC), Musk will serve as a Class II director until 2024.
This is the type of position that can be used as an anti-acquisition measure.
“As long as Musk is serving on the Board and for 90 days thereafter, Musk alone or as a member of a group will not become a beneficial owner of more than 14.9% of the Company’s common stock. At the time, the derivative for these purposes including economic exposure through securities, swaps, or hedging transactions,” according to the filing.
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