Earlier this month, Musk surprised the Internet by acquiring a 9.2% stake in Twitter, at the time worth $2.89 billion. That makes him the company's biggest shareholder.
On April 5, Twitter announced a deal to appoint Musk to the company's board of directors. That deal limited Musk's ownership of the company to 14.9% while serving as a director.
In another surprising twist, Musk changed his mind the morning the deal was set to take effect.
Here's the note from CEO Parag Agrawal informing Twitter employees of the development...
Elon Musk has decided not to join our board. Here's what I can share about what happened.
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.
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. We have and will always value input from our shareholders whether they are on our Board or not. Elon is our biggest shareholder and we will remain open to his input.
There will be distractions ahead, but our goals and priorities remain unchanged. The decisions we make and how we execute is in our hands, no one else's. Let's tune out the noise, and stay focused on the work and what we're building.
Musk has yet to comment on why he changed his mind. Please download the iClarified app or follow iClarified on Twitter, Facebook, YouTube, and RSS for more updates.