This past week, Tesla and SpaceX CEO Elon Musk purchased a 9.2-percent of Twitter shares. As a result, many believed that he would take a seat on the company’s board; however, that will no longer be the case.
Twitter CEO Parag Agrawal has announced to the company that Musk is no longer going to join the social media outlet’s board, adding Musk has decided against taking up the seat.
“We announced on Tuesday that Elon would be appointed to the Board contingent on a background check and formal acceptance,” Agrawal writes.
“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.”
Joining Twitter’s board would have prohibited Musk from owning more than 14.9-percent of the company. When Musk’s investment became public understanding, his stake in Twitter was valued at $2.89 billion.
There is no further word as to what’s next for Musk and how he plans to be involved with Twitter now that he won’t be joining their board.
Eduardo Razo is the Assistant Content Editor for BNM, which includes writing daily news stories on the news media industry. He can be found on Twitter @eddierazo_ or you can reach him by email at eddie1991razo@gmail.com.
