Contrary to news reports, Tesla CEO Elon Musk has not joined Twitter Board.
Parag Agarwal, CEO, Twitter, tweeted about it on April 11.
Musk had recently bought 9.2 percent stake in Twitter, and later it was announced that he will join the board of the platform.
Musk, acquired 9.2 percent share in the micro-blogging platform for nearly $3 billion.
Parag Agarwal said in the tweet: “The board and I had many discussions about Elon joining the board, and with Elon directly. We were excited to collaborate and clear about the risks. We also believed that having Elon as a fiduciary of the company where he, like all board members, has to act in the best interest of the company and all our shareholders, was the best path forward. The board offered him a seat.
“We announced on Tuesday that Elon would be appointed to the Board contingent on a background check and formal acceptance. Elon’s appointment to the board was to become officially effective 4/9, but Elon shared that same morning that he will no longer be joining the board. I believe this is for the best. We have and will always value input from our shareholders whether they are on our Board or not. Elon is our biggest shareholder and we will remain open to his input," he said.
"There will be distractions ahead, but our goals and priorities remain unchanged. The decisions we make and how we execute is in our hands, no one else’s. Let’s tune out the noise, and stay focused on the work and what we’re building," Agrawal said.
According to a filing with the US Securities and Exchange Commission (SEC), Musk will serve as a class II director until 2024.
This is a type of position that can be used as an anti-takeover measure.
"The Company will appoint Mr. Musk to the Company's Board of Directors (the "Board") to serve as a Class II director with a term expiring at the Company's 2024 Annual Meeting of Stockholders," the filing read.
"For so long as Mr. Musk is serving on the Board and for 90 days thereafter, Mr. Musk will not, either alone or as a member of a group, become the beneficial owner of more than 14.9% of the Company's common stock outstanding at such time, including for these purposes economic exposure through derivative securities, swaps, or hedging transactions," it added.
