Musk would have been named to Twitter’s board on Saturday, but the world’s richest man informed the company that day that he would not, in fact, be taking up the board seat.
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Shares of the social media company fell more than 8% to below $43 a share at 4 a.m. ET before recovering slightly.
On April 5, Musk and Twitter said it would be join twitter board. A day before, the Tesla and the CEO of SpaceX revealed through financial filings that he is Twitter’s largest shareholder, with a 9.2% stake in the company.
Musk would have been named to Twitter’s board on Saturday, but the world’s richest man informed the company that day that he would not, in fact, be taking up the board seat. Twitter’s investor relations page has yet to be updated and Musk is still listed as a board member.
“Elon has decided not to join our board,” Agrawal wrote on Twitter on Sunday. “I sent a short note to the company, sharing with all of you here.”
In the note, Agrawal said Musk remains Twitter’s largest shareholder and the company will remain open to his comments.
“We were excited to collaborate and clarify the risks,” he wrote. “We also believed that having Elon as a trustee of the company where he, like all board members, has to act in the best interest of the company and all of our shareholders was the best way forward.”
The Twitter CEO did not say whether Musk gave specific reasons for changing his mind about taking on the new obligation.
Twitter shares rose 4% on Tuesday after the board’s announcement.
On Monday, after Musk’s involvement was initially revealed, Twitter had its better day since the company’s IPO in 2013, it has soared more than 27%.
Over the weekend, without disclosing that he had turned down the Twitter board spot, Musk posted a series of ideas for transforming the social media company and its products.
One of the suggestions was a vulgar joke in the form of a Twitter poll. Musk asked people to vote on whether Twitter should remove the “w” from his name. Doing so would turn Twitter into a “giggle,” an allusion to the female anatomy.
Musk’s more serious suggestions included leaving Twitter Blue subscribers pay with dogecoin, get an “authentication” checkmark and keep Twitter Blue ad-free.
“Everyone who signs up for Twitter Blue (i.e. pays $3 a month) is required to get an authentication checkmark,” Musk wrote. “And no ads. The power of corporations to dictate policy is greatly increased if Twitter relies on advertising dollars to survive.”
Musk also suggested that Twitter should turn its San Francisco headquarters into a homeless shelter, “since no one shows up anyway.”
He also suggested that Twitter’s user numbers are inflated by bots and at one point asked if Twitter is dying.
— Additional reporting by Lora Kolodny.