Tesla Inc (NASDAQ:TSLA) CEO Elon Musk is not joining Twitter Inc (NYSE:TWTR)’s board of directors after acquiring a 9% stake in the company for $2.9 billion. Amid the purchase, some employees were concerned about the platform’s content moderation given Musk’s free-speech advocacy.
“For The Best”
As reported by Fox Business, Twitter CEO Parag Agrawal announced via Twitter Sunday that “Elon has decided not to join our board. I sent a brief note to the company, sharing with you all here.”
In the note to employees, Agrawal said, “The Board and I had many discussions about Elon joining the board, and with Elon directly. We were excited to collaborate and clear about the risks.”
“We also believed that having Elon as a fiduciary of the company where he, like all board members, has to act in the best interests of the company and all our shareholders, was the best path forward. The board offered him a seat,” he added.
Agrawal then said, “We announced on Tuesday that Elon would be appointed to the Board contingent on a background check and formal acceptance… 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.
A Bigger Stake?
On Monday, shares of Twitter dropped on the news Musk had declined. Still, Agrawal underlined that the company always values input from shareholders regardless whether they are on the board or not.
On March 26, upon the purchase announcement, Musk created a Twitter poll asking whether the platform should debut an edit button. The idea was approved by 73.6% of users.
"Given that Twitter serves as the de facto public town square, failing to adhere to free speech principles fundamentally undermines democracy, what should be done?" he tweeted.
He later posted about converting the Twitter SF HQ “to homeless shelter since no one shows up anyway,” an idea that was supported by 91.3% of total votes.
Reports indicate that Elon Musk cannot own up to 15% of the firm should he become a board member. Since he declined to join, New York Focus Managing Editor Peter Sterne asked on Twitter: “Does that mean he can he [sic] buy as much of Twitter's outstanding stock as he wants?”