SAN FRANCISCO (BLOOMBERG) – Twitter mentioned billionaire Elon Musk has determined not to join its board, a shocking twist to a week-long saga that has captivated the tech neighborhood and touched off renewed hypothesis concerning the firm’s future.
Mr Musk held “many discussions” with Twitter’s administrators however he finally declined their offer to take a board seat, chief govt officer Parag Agrawal tweeted. According to the CEO, Mr Musk knowledgeable Twitter of his resolution on April 9, the identical day he was slated to formally join the board.
“I believe this is for the best,” the Twitter CEO mentioned in an inside memo shared late on Sunday (April 10). “There will be distractions ahead, but our goals and priorities remain unchanged.”
The abrupt reversal ignites renewed hypothesis about Mr Musk’s intentions for Twitter since disclosing he had taken a stake of simply over 9 per cent – turning into the social media big’s largest particular person shareholder. If he doesn’t join the board, Mr Musk wouldn’t be topic to an settlement to maintain his stake at not more than 14.9 per cent.
The man behind automaker Tesla and SpaceX has been vocal about modifications he would contemplate on the social media platform. Mr Musk wasted no time in interesting to customers about potential strikes, from turning Twitter’s San Francisco headquarters right into a homeless shelter and including an edit button for tweets to granting computerized verification marks to premium customers. Those open musings drew in even Amazon.com founder and space-faring rival Jeff Bezos, amongst different high-profile personalities.
Mr Musk posted a single emoji after the Twitter CEO’s rationalization, a smiling face with a hand over its mouth.
Mr Musk and Twitter executives had been anticipated to host a townhall assembly for workers this week, although it’s unsure if that may proceed. Representatives for Mr Musk and Twitter declined to remark.
Mr Musk’s tweets have enthralled the social media sphere for the reason that revelation of his stake. Twitter introduced shortly after that the entrepreneur can be becoming a member of its board, spurring widespread debate. Several market watchers tweeted that Mr Musk could also be staying off the board to keep away from potential conflicts of curiosity in future – have been he to contemplate growing his stake of Twitter or buying it outright.
Mr Musk is the world’s richest man, in accordance to the Bloomberg Billionaires Index. He can also be one of many greatest personalities on Twitter and has usually stirred controversy on the platform.
The billionaire may face scrutiny from United States regulators by disclosing his huge stake days later than laws permit, and since he revealed it in a submitting usually reserved for passive investments. Ascending to Twitter’s board so swiftly after the disclosure may have difficult that course of.
Mr Musk is already searching for to exit a 2018 cope with the Securities and Exchange Commission that put controls in place associated to his earlier tweeting about Tesla.
Citing inside firm messages, the Washington Post final Thursday reported that some staff in latest days have expressed concern on Twitter’s worker Slack channels that Mr Musk may inflict harm to the corporate’s tradition, in addition to make it more durable for individuals to do their jobs.
“Let’s tune out the noise, and stay focused on the work and what we’re building,” Mr Agrawal mentioned in his Sunday memo to workers.