Musk’s substantial Twitter holdings were the topic of numerous market speculations last week.
Elon Musk will not join the board of directors of Twitter (TWTR), nearly a week after a filing disclosed the technology entrepreneur purchased a 9.2 percent stake in the $37 billion firm.
“Elon’s nomination to the board was scheduled to take effect on 4/9, however, Elon announced that same morning that he would be resigning. This, I feel, is for the best,” revealed Twitter CEO Parag Agrawal in a post.
“We were enthusiastic about collaborating and cognizant of the hazards. We also believed that Elon’s appointment as a fiduciary of the company, where he, like all board members, is required to act in the firm’s and all our shareholders’ best interests, was the best road ahead,” Agrawal added.
Elon has decided not to join our board. I sent a brief note to the company, sharing with you all here. pic.twitter.com/lfrXACavvk
— Parag Agrawal (@paraga) April 11, 2022
Agrawal noted that Musk is still the largest shareholder in Twitter and that the firm will remain receptive to his suggestions. “We have always valued shareholder input, regardless of whether they are on our board of directors,” he said.
Shareholders possess a portion of a company’s stock and have a financial stake in the company’s success. Typically, large shareholders like as Musk are offered a seat on the directors’ board of directors with a vote on how the firm is controlled and conducted.
Musk, well known as the CEO of electric vehicle manufacturer Tesla (TSLA) and space exploration company SpaceX, is a fervent supporter of cryptocurrencies and frequently uses Twitter to express his thoughts on the subject.
Last week’s revelations about his Twitter holdings triggered brief jumps in crypto markets, with Dogecoin’s DOGE tokens rising by as much as 10%. However, the cryptocurrency markets showed no immediate reaction to this morning’s announcement.
Twitter plunged over 5% in Frankfurt on Monday, while the Stoxx 600 Europe index dipped 0.7 percent and Germany’s DAX fell 0.9 percent.
Over the weekend, Musk teased DOGE fees for Twitter services. “Perhaps even an option to pay in Doge?” he asked in response to a tweet on Twitter Blue’s monthly subscription fee.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.