Tesla CEO Elon Musk will not join Twitter’s board after the company said he would.
Is Elon Musk on Twitter’s board?
Musk won’t join Twitter’s board, according to The Washington Post.
- This was reported about one week after Musk had become the largest shareholder for Twitter and had been appointed to the board.
Twitter CEO Parag Agrawal shared the news on Twitter Sunday night.
- “Elon’s appointment to the board was to become officially effective 4/9, but Elon shared that same morning he will no longer be joining the board,” Agrawal wrote. “I believe this is for the best.”
Elon has decided not to join our board. I sent a brief note to the company, sharing with you all here. pic.twitter.com/lfrXACavvk
— Parag Agrawal (@paraga) April 11, 2022
Did Elon Musk buy Twitter?
A filing from the Securities and Exchange Commission released Monday, April 4, announced that Musk had bought 73,486,938 shares of Twitter, which is about 9.2% of the company’s stake, as I wrote for the Deseret News.
- That stake was worth about $2.89 billion at the end of the day Friday, per CNBC.
There was talk at the time that Musk’s purchase could be a sign of a Twitter takeover.
- “Musk could try to take a more aggressive stance here on Twitter,” Wedbush analyst Dan Ives told CNBC on Monday. “This eventually could lead to some sort of buyout.”
Was Elon Musk supposed to join Twitter’s board of directors?
Twitter announced it would appoint Musk to its board of directors about 24 hours after news broke that Musk had bought the company’s shares.
- Twitter submitted a filing with the Securities and Exchange Commission that called Musk a class II director until 2024, which “can be used as an anti-takeover measure,” according to The Verge.
- “For so long as Mr. Musk is serving on the Board and for 90 days thereafter, Mr. Musk will not, either alone or as a member of a group, become the beneficial owner of more than 14.9% of the Company’s common stock outstanding at such time, including for these purposes economic exposure through derivative securities, swaps, or hedging transactions.”
What’s next for Elon Musk?
It’s unclear what Musk will do next. But, according to The New York Times, Musk will no longer have to follow the previous agreement that said he could not buy more than 14.9% of the company or conduct a takeover since he was a board member.
- “Mr. Musk could now keep adding to his stake in the company,” The New York Times reports.