Elon Musk decides to not be a part of Twitter board, says CEO Parag Agrawal

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Tesla CEO Elon Musk, proven right here in March, proposed a sequence of modifications to Twitter’s subscription service, together with value modifications and the choice to pay in dogecoin.

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Patrick Pleul | AFP | Getty Photos

Tesla and SpaceX CEO Elon Musk has deserted his plans to hitch the board of Twitter, his social community of alternative.

Twitter CEO Parag Agrawal introduced publicly on Sunday that Musk stays the most important shareholder of Twitter, and the corporate will stay open to his enter.

Musk knowledgeable Twitter on Saturday morning that he wouldn’t, in truth, take the board seat.

Musk’s appointment would have began on Saturday, “contingent on a background verify and formal acceptance,” based on Agrawal.

“We have been excited to collaborate and clear concerning the dangers. We additionally believed that having Elon as a fiduciary of the corporate the place he, like all board members, has to behave in one of the best pursuits of the corporate and all our shareholders was one of the best path ahead,” he wrote.

The Twitter CEO didn’t say whether or not Musk gave particular causes for altering his thoughts about taking up the brand new obligation.

Encouraging Twitter staff to stay centered, Agrawal mentioned, “There shall be distractions forward however our targets and priorities stay unchanged.”

On April 5, Elon Musk and Twitter mentioned he can be joining Twitter’s board. A day earlier, the Tesla CEO and world’s richest particular person disclosed through monetary filings that he is the social media firm’s greatest shareholder.

Twitter’s inventory jumped 4% on Tuesday following the board announcement. On Monday, after Musk’s stake was initially revealed, Twitter had its best day because the firm’s IPO in 2013, skyrocketing greater than 27%. 

A monetary submitting from Twitter specified that so long as Musk served on its board, he can be restricted to proudly owning not more than a 14.9% stake within the firm’s widespread inventory excellent, together with by means of by-product securities, swaps, or hedging transactions.

Musk may theoretically improve his 9% stake past that restrict now.

All through the weekend, with out revealing that he had turned down the board seat at Twitter, Musk posted quite a few concepts to rework the social media firm and its merchandise.

One of many strategies was a rough joke within the type of a Twitter ballot. Musk requested folks to vote on whether or not Twitter ought to drop the “w” from its identify. Doing so would flip Twitter into “titter,” an allusion to feminine anatomy.

Extra severe strategies from Musk included to let Twitter Blue subscribers pay with dogecoin, get an “authentication” checkmark, and preserve Twitter Blue freed from commercials.

“Everybody who indicators up for Twitter Blue (ie pays $3/month) ought to get an authentication checkmark,” Musk wrote. “And no adverts. The ability of firms to dictate coverage is drastically enhanced if Twitter depends upon promoting cash to outlive.”

Musk additionally prompt that Twitter ought to flip its headquarters workplace in San Francisco right into a homeless shelter, “since nobody reveals up anyway.”

Musk’s competitor and fellow centi-billionaire, Jeff Bezos, chimed in. Bezos mentioned Twitter may flip a portion of its workplace right into a shelter. “Labored out nice and makes it simple for workers who need to volunteer,” he mentioned sharing a narrative a couple of related initiative at Amazon.

Correction: This story has been up to date to right the date of when Twitter and Elon Musk mentioned he can be becoming a member of the board.

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