Twitter Announces Elon Musk Won’t Join Its Board After All: “This is For the Best”

Twitter CEO Parag Agrawal announced on Sunday that Tesla CEO Elon Musk would not be joining the social network’s board of directors after all, CNN reports.

The company announced last week that Musk would join the board of directors.

Musk bought more than 9% of the company’s stock after spending years airing complaints about its policies.

Both Musk and Twitter brass appeared excited about the move, with Musk teasing changes to the social network’s rules in the near future.

Musk tweeted Tuesday that he was "looking forward to working with Parag & Twitter board to make significant improvements to Twitter in coming months!"

Twitter founder Jack Dorsey said that Musk and Agrawal would make "an incredible team."

The company’s stock surged after the announcement.

Change of heart:

Agrawal said Sunday that Musk had a change of heart.

"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," he said. "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."

He added that the company’s board "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."

What happened?:

Analysts say Musk’s public insistence on controversial rule changes may have prompted the reversal.

"In our opinion, the Twitter Board and Musk could not come to an agreement around Musk's communications with the public (various polls) over Twitter as he likely needed to take a more back seat/quiet stance as part of joining the Board," Wedbush analyst Dan Ives said in an investor note Monday, according to CNN.

Ives added that Musk’s relationship with the company may now become "a 'Game of Thrones' battle between Musk and Twitter with the high likelihood that Elon takes a more hostile stance towards Twitter and further builds his active stake in the company."

 

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