[IJR] Elon Musk, CEO of Space X and Tesla, bought a huge share of Twitter but has turned down a seat on the social media giant’s board.This has everyone asking, is Musk positioning himself to take over Twitter?
Elon Musk bought 9.2 percent of Twitter, which makes him the largest shareholder in the social media company, CNN
...formerly the
Cable News Network, now who know what it might stand for...
reported.
Many then assumed that his next move would be to join the Twitter board. But he has opted out of taking a seat, ABC News reported.
"Elon’s appointment to the board was to become officially effective on April 9, but Elon shared that same morning that he would not be joining the board. I believe this is for the best," Twitter CEO Parag Agrawal announced.
Many assumed Musk would be joining the board since he tweeted over the weekend several suggestions for changes to Twitter, such as making it ad free, even though 90 percent of Twitter’s 2021 revenue came from advertisement, ABC News reported.
Agrawal said that Twitter’s board understood the risks of having Musk as a member. But the board "believed having Elon as a fiduciary of the company, where he, like all board members, has to act in the best interests of the company and all our shareholders, was the best path forward," Agrawal wrote.
Having Musk on the board would have been in the board’s best interest because, though he is already the largest shareholder, the board was offering him a seat on the condition that he not own more than 14.9 percent of the company’s outstanding stock, ABC News reported.