Elon Musk no longer joining Twitter’s board of directors


SAN FRANCISCO (AP) — Twitter’s largest investor, billionaire Elon Musk, is reversing course and can now not be part of the corporate’s board of administrators lower than per week after being awarded a seat.

Twitter CEO Parag Agrawal announced the news, which adopted a weekend of Musk tweets suggesting modifications to Twitter, together with making the positioning ad-free. Almost 90% of Twitter’s 2021 income got here from advertisements.

Nonetheless, plenty of the tweets posted by Musk over the weekend relating to potential modifications at Twitter now not seem on the platform.

“Elon’s appointment to the board was to grow to be formally efficient on 4/9, however Elon shared that very same morning that he wouldn’t be becoming a member of the board,” Agrawal wrote in a reposted notice initially despatched to Tesla workers. “I imagine that is for the very best.”

Agrawal didn’t supply an evidence for Musk’s obvious resolution. He stated the board understood the dangers of getting Musk, who’s now the corporate’s largest shareholder, as a member. Nevertheless it, “believed having Elon as a fiduciary of the corporate, the place he, like all board members, has to behave in the very best pursuits of the corporate and all our shareholders, was the very best path ahead,” he wrote.

The quickly evolving relationship between Musk and Twitter started precisely one week in the past when regulatory filings revealed the mercurial billionaire had amassed a 9.2% stake within the social media platform, making him its largest shareholder.

Twitter gave Musk a seat on the board on the situation that he not personal greater than 14.9% of the corporate’s excellent inventory, based on a regulatory submitting.

Whereas Musk has been one in every of Twitter’s loudest critics, the sudden withdrawal from the board, which grew to become official Saturday, may sign that the quickly evolving narrative between Musk and Twitter will grow to be extra acrimonious.

“This now goes from a Cinderella story with Musk becoming a member of the Twitter Board and conserving his stake beneath 14.9% serving to transfer Twitter strategically ahead to probably a “Sport of Thrones” battle between Musk and Twitter with the excessive probability that Elon takes a extra hostile stance in the direction of Twitter and additional builds his lively stake within the firm,” wrote Daniel Ives, who follows Twitter for Wedbush.

That, based on Ives, may imply that Musk will be part of with one other main investor to power “strategic modifications at Twitter,” or that he’ll attempt to power the corporate to maneuver in a brand new route by rattling board members and executives.

Shares of Twitter Inc., which jumped practically 30% after Musk’s stake grew to become public final week, fell virtually 2% on the opening bell Monday.

Musk posted a number of cryptic tweets late Sunday, together with one displaying a meme saying, “In all equity, your honor, my consumer was in goblin mode,” adopted by one saying “Explains every part.” One other, later tweet was of an emoji with a hand over its mouth.

He now has a 9.2% stake in Twitter, elevating questions on how he may attempt to reshape the social media platform as Twitter’s greatest shareholder.

Musk’s 80.5 million Twitter followers make him probably the most well-liked figures on the platform, rivaling pop stars like Ariana Grande and Woman Gaga. However his prolific tweeting has generally gotten him into hassle, comparable to when he has used it to advertise his enterprise ventures, rally Tesla loyalists, query pandemic measures and choose fights.

In a single well-known instance, Musk apologized to a British cave explorer who alleged the Tesla CEO had branded him a pedophile by referring to him as “pedo man” in an offended — and subsequently deleted — tweet. The explorer filed a defamation go well with, though a Los Angeles jury later cleared Musk.

He’s additionally been locked in a long-running dispute with the U.S. Securities and Alternate Fee over his Twitter exercise. Musk and Tesla in 2018 agreed to pay $40 million in civil fines and for Musk to have his tweets authorized by a company lawyer after he tweeted about having the cash to take Tesla personal at $420 per share. That didn’t occur however the tweet triggered Tesla’s inventory value to leap. His lawyer has contended that the SEC is infringing on Musk’s free speech rights.

Musk has described himself as a “free speech absolutist” and has stated he doesn’t suppose Twitter resides as much as free speech rules — an opinion shared by followers of Donald Trump and a number of other right-wing political figures who’ve had their accounts suspended for violating Twitter content material guidelines.

However what’s actually has been driving Musk’s Twitter involvement isn’t clear. Different preoccupations with the service embody arguing to make Twitter’s algorithm viewable by the general public, widening the supply of “verified” Twitter accounts, and blasting a profile photograph initiative involving non-fungible tokens, or NFTs.

Musk has additionally referred to as “crypto spam bots,” which search tweets for cryptocurrency associated key phrases then pose as buyer assist to empty consumer crypto wallets, the “most annoying drawback on Twitter.”

Twitter’s CEO and different board members have praised Musk, suggesting they may take his concepts significantly.

Agrawal’s preliminary actions since taking up from co-founder Jack Dorsey in November have concerned reorganizing divisions with out making main modifications. The corporate has lengthy lagged behind its social media rivals and boasts far fewer customers.

Copyright 2022 The Related Press. All rights reserved.

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