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Elon Musk will not be joining the Twitter board of directors

Tesla CEO Elon Musk has decided not to join Twitter's board of directors, despite becoming the social media company's largest shareholder less than a week ago.

Elon Musk will no longer be a member of Twitter’s board of directors, according to Parag Agrawal, the social media company’s CEO.

This comes less than a week after he was offered a seat on Twitter’s board of directors after becoming the company’s largest shareholder.

Tesla CEO Elon Musk bought a 9.1% stake in Twitter on April 4th. Following that, the company announced that he would be appointed to the 12-member board of directors, subject to a background check and formal acceptance.

On Saturday, April 9, the position, which was not a top-tier one, would have become official. Musk informed Twitter that he would not be accepting it that morning. He didn’t give any details about why he changed his mind.

This comes just days after Musk expressed his enthusiasm for joining the board of directors, tweeting, “Looking forward to working with Parag and the Twitter board to make significant improvements to Twitter in the coming months!”

Musk’s Twitter Stock Is No Longer Restricted

Musk’s stake in Twitter would have been limited to 14.9 percent or less of common stock during his tenure on the board of directors, and for 90 days afterward, as per his agreement.

Musk has previously been critical of the platform, and the position would have come with a fiduciary duty to act in the best interests of the company and its shareholders.

Musk is no longer bound by either of these requirements by rejecting the seat. “Elon is our biggest shareholder,” Agrawal wrote in a note to the company. “We remain open to his input.”

Tesla’s CEO is now free to criticize the company’s platform

Musk suggested to his 81 million Twitter followers on the same day he received his rejection that the platform might be dying.

Musk directed more criticisms at Twitter in two since-deleted tweets from the weekend. One tweet suggested turning the company’s San Francisco headquarters into a homeless shelter, while another suggested giving an authentication checkmark to everyone who signs up for Twitter Blue.

What Does This Mean for the Future of Twitter?

Musk no longer has a limit on how many shares he can own, allowing for a hostile takeover. As the world’s richest man, he has the financial means to purchase any stock that comes up for sale.

Twitter’s stock price has been volatile in the aftermath of these announcements, soaring by as much as 30% following news of Musk’s acquisition, then falling by another 10% when his appointment to the board was announced. Following the announcement of his reversal, shares fell as much as 4% in pre-market trading on Monday before recovering slightly.

The fallout from Musk’s actions, according to Agrawal’s statement, could cause distractions within the company, but he insisted that the company’s goals and priorities remain unchanged.

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