Elon Musk Will Not Join Twitter’s Board of Directors
Musk’s substantial Twitter holdings were the topic of several market speculations last week.
Elon Musk, the wealthy Tesla CEO, roiled cryptocurrency markets in 2021, tweet by tweet. Elon Musk will not join the board of directors of Twitter (TWTR), almost a week after a filing disclosed the technology entrepreneur purchased a 9.2 percent stake in the $37 billion firms.
“Elon’s nomination to the board was scheduled to take effect on 4/9, however, Elon announced that same morning that he would be resigning. This, I feel, is for the best,” revealed Twitter CEO Parag Agrawal in a post.
“We were enthusiastic about collaborating and cognizant of the hazards. We also thought that Elon’s appointment as a fiduciary of the business, where he, like other board members, is required to act in the firm’s and all our shareholders’ best interests, was the best road ahead,” Agrawal added.
Agrawal noted that Musk is still the largest shareholder in Twitter and that the firm would remain receptive to his suggestions. “We have always valued shareholder feedback, regardless of whether they are on our board of directors,” he added.
Shareholders possess a portion of a company’s stock and have a financial stake in the company’s success. Typically, large shareholders like Musk are granted a seat on the directors’ board of directors with a vote on how the firm is governed and conducted.
Musk, well known as the CEO of electric vehicle manufacturer Tesla (TSLA) and space exploration company SpaceX, is a fervent supporter of cryptocurrencies and often uses Twitter to express his thoughts on the subject.
Last week’s revelations about his Twitter holdings triggered brief jumps in crypto markets, with Dogecoin’s DOGE coins rising by as much as 10%. However, the cryptocurrency markets exhibited no immediate response to this morning’s statement.
Twitter plunged over 5% in Frankfurt on Monday, while the Stoxx 600 Europe index dipped 0.7 percent and Germany’s DAX sank 0.9 percent.
Over the weekend, Musk teased DOGE fees for Twitter services. “Perhaps even an option to pay in Doge?” he asked in response to a tweet on Twitter Blue’s monthly membership fee.
Meanwhile, Musk made light of Twitter over the weekend. He questioned respondents on whether Twitter’s San Francisco headquarters should be converted into a “homeless refuge,” as well as on “Delete the w in twitter?”