Elon Musk, the CEO of Tesla and SpaceX, has cancelled his plans to join the board of Twitter.
On Sunday, Twitter CEO Parag Agrawal stated publicly that Musk remains the company’s largest shareholder and that the company will continue to welcome his input.
Musk said on Twitter on Saturday morning that he will not be joining the board of directors.
Musk’s appointment would have started on Saturday, “contingent on a background check and formal acceptance,” according to Agrawal.
“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,” he wrote.
Musk did not specify why he changed his mind about taking on the extra responsibility, according to the Twitter CEO.
Agrawal wrote in his tweet, “There will be distractions ahead but our goals and priorities remain unchanged.”
Elon Musk and Twitter announced on April 5 that he would be joining the Twitter board of directors. The Tesla CEO and world’s richest person revealed that he is the social media company’s largest stakeholder in financial filings a day earlier.
Following the board’s announcement, Twitter’s shares soared 4% on Tuesday. Twitter had its biggest day since its IPO in 2013, jumping more than 27 percent on Monday, when Musk’s stake was first revealed.
According to a financial filing from Twitter, Musk would be limited to having no more than a 14.9 percent ownership in the company’s outstanding common stock, including through derivative securities, swaps, or hedging transactions, as long as he served on the board.
Musk may hypothetically expand his 9% ownership above the current limit.
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