The saga between Twitter (NYSE: TWTR) and Elon Musk continues to twist and turn. After announcing just five days ago that the Tesla (NASDAQ: TSLA) CEO would be joining the board of directors of Twitter following his move to take a massive 9.1% stake in the firm, it appears that Musk has reversed course.
It was informally announced via Twitter by CEO Parag Agrawal just minutes ago that Musk evidently has elected to not join the board of directors. What’s more, it appears this decision was already made Saturday by Musk, with the development just coming to light now.
In announcing the change of course, Agrawal indicated that the board had many discussions, both with and without Musk, on whether he should formally join the firms board of directors. Part of the decision to do invite Musk to the board evidently was based on the fact that Musk would become a fiduciary, thereby forcing him to “act in the best interest of the company,” which was “the best path forward.”
After the announcement was made on April 5, Musk was set to be sworn in yesterday, on April 9. Before the appointment was formalized however, Musk reportedly decided he no longer wished to join the board.
Commenting on the decision, Agrawal stated, “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.”
Notably, despite Musk declining yesterday to join the board, he has spent the weekend raising questions related to the company as a whole. For instance, yesterday he suggested that any individual whom signs up for Twitter Blue, which is essentially the “premium” version of the platform, should get authenticated as part of the process.
He also had some .. less than professional commentary on the company as well.
While also seemingly trolling the company itself, suggesting he is aiming to create significant change at the firm. To this end, it should be noted that if he indeed took on the role of director with the company, his potential ownership was to be capped at 14.9%.
Information for this briefing was found via Twitter and Edgar. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.