After announcing last week that he would take a 9.2% stake in Twitter, Elon Musk has notified the company that he will not join the board. Reasons were not disclosed.
Twitter CEO says Elon Musk does not want to join its board
Last week, the announcement that Elon Musk had taken a 9.2% (or $37 billion) stake in the social network Twitter sparked a major stock rally in Twitter (TWTR) and in Musk’s favourite cryptocurrency, Dogecoin.
This appointment of Elon Musk to the board of directors was supposed to take effect on April 9.
But this morning, Twitter CEO Parag Agrawal, announced in a tweet that the successful American entrepreneur would not be joining its board:
“We were excited to collaborate and aware of the risks. We also felt that having Elon as a trustee of the company where, like all board members, he has to act in the best interests of the company and all of our shareholders, was the best way forward. “
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
The precise reasons were not disclosed. Elon Musk will remain influential in the decisions made by the board of directors.
In his statement, Parag Agrawal confirmed that the company obviously remains open to Elon Musk’s input:
“We have and will always welcome input from our shareholders, whether they are on our board or not “
Elon Musk, Twitter and Dogecoin, a great love story
Elon Musk, best known as the CEO of electric car maker Tesla and space exploration company SpaceX, has been a fan of the social network Twitter for years. He frequently uses it to ask questions of and interact with his community. Although, it should be noted, he has criticised it on numerous occasions because he believes it violates certain principles of free speech.
He is also a very strong supporter of crypto-currencies, and does not hesitate to present his views on the social network on this subject. His stake in Twitter has even fuelled speculation that his favourite cryptocurrency, Dogecoin, has jumped more than 9%.
He proposed in a tweet this weekend that options on the social network could be paid for in DOGE:
Maybe even an option to pay in Doge?
– Elon Musk (@elonmusk) April 10, 2022
Dogecoin and Musk are a great love story. He has posted several tweets and memes that referenced the cryptocurrency. In May 2021, he announced he was working with Dogecoin developers to improve the efficiency of the transaction system. With his millions of followers on Twitter (over 81 million at the time of this article), Elon Musk therefore has a great deal of influence on the price of this cryptocurrency.
His company Tesla even accepted payments in Dogecoin for certain items in its shop last January. Also, Musk said he would give free advertising to the American fast food chain McDonald’s if it accepts Dogecoin as payment.
The value of Dogecoin increased by 12,000% between January and May 2021.
However, this morning’s announcement that it would not take a board position did not have a major impact on the cryptocurrency’s price. On the other hand, Twitter shares were moving lower in pre-opening US market trading.
