Photo: Patrick Pleul/Pool via REUTERS
Elon Musk will not join the board of directors of Twitter, which came after he publicly freely expressed his opinion on what needs to be changed on the social network.
It was revealed on Monday that Elon Musk has decided not to join Twitter's board of directors, just days after the two sides agreed to do so. Twitter CEO Parag Agrawal, made a corresponding announcement on the social network, attaching an image with his message. He made several remarks that indicate the tension that has occurred.
Musk is a very active Twitter user, with millions of his followers using the social network just because he is on it. If at some point he stopped using Twitter and started using another social network, then Twitter could register a large drop in the number of active users. Musk has repeatedly stressed the problem of free speech on Twitter and it was the desire to solve it that became the main factor in his participation in the company, but it seems that this intention was not accepted positively by the leadership of the social network.
Agrawal emphasized that he came to an agreement with Musk that he should act in the interests of the company, and that is why he was offered a seat on the board of directors. Obviously, Musk's activity on Twitter in recent days—when he posed many different questions to his followers, consulting with them about the further development of the social network—caused tension among the company's management. While the head of Tesla used his right to free speech by speaking openly about Twitter's problems, the company could see it as a crippling act.
After Musk turned down his seat on the board, Agrawal appeared to be relieved, writing "I believe this is for the best." He emphasized that there will be "distractions" ahead, but the company's goals and priorities will remain unchanged. Agrawal emphasized that no one but only the Twitter team can influence the decisions they make and how they implement them.
"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 ."
Full text of the letter:
Elon Musk has decided not to join our board. Here's what I can share about what happened.
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 interests 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.
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."
Assessing the current situation, Wedbush Securities analyst Dan Ives wrote that this could lead to a battle reminiscent of the hit HBO show, Game of Thrones. He also drew attention to the fact that the two sides probably could not agree on exactly how Musk should communicate with the public. Ives, like some others, was under the impression that Twitter was pushing Musk to take a more low-key stance. As Twitter user @TankTDS aptly put it describing this situation:
"Elon became the largest shareholder for Free Speech
Elon was told to play nice and not speak freely"
Ives believes that now the story is likely to turn from a "Cinderella story" with Musk joining the board of directors and not increasing his stake, to a "Game of Thrones" battle between Musk and Twitter. Ives added that there is a "high likelihood that Elon takes a more hostile stance towards Twitter and further builds his active stake in the company."
© 2022, Eva Fox | Tesmanian. All rights reserved.
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