Chief executive officer of Twitter, Parag Agrawal has announced that Elon Musk has made his decision on not joining the social media platform’s board.
Initially, Agrawal said in a statement that Musk’s appointment was to become effective on 9 April.
However, on the same day itself, Musk informed Twitter of his decision according to Agrawal himself.
Yesterday, Twitter shares declined about 7% in pre-market trading on the New York Stock Exchange (NYSE) after Elon Musk's decision was announced.
Key Highlights
- Despite Musk's decision, Twitter will remain open to the Tesla CEO's feedback regarding the company, Agrawal added.
- Elon Musk currently is the largest shareholder of Twitter, holding a 9.2% stake, 4x more than Twitter's co-founder himself, Jack Dorsey, who currently owns 2.25%.
- Last week, after a filing revealed that Musk has purchased a substantial stake in Twitter, the social media platform’s shares rose more than 25%.
- It was reported that Musk held “many discussions” with Twitter’s directors but he rejected their offer of a board seat in the end.
- There were speculations stating that Musk may be staying off the board to avoid conflicts of interest if he were to consider on increasing his stake in Twitter or acquiring it outright in the future.
