Network no-show

Musk fuels bid rumours after jilting Twitter board

Elon Musk
Elon Musk: made demands for change

Tesla founder Elon Musk will not be joining Twitter’s board of directors, fuelling rumours that he may mount a takeover bid for the social network.

The platform’s largest shareholder gave no reason for his decision, but by rejecting an offer to join the board Musk now has more options after acquiring a 9.2% stake last week. It releases him from an agreement not to take his holding above 14.9%.

A stock market filing reveals that Musk has “no present plans” to buy more Twitter shares, but “reserves the right to change his plans at any time, as he deems appropriate”.

Earlier this month the world’s richest man bought nearly 73.5 million shares in Twitter, giving him a stake worth just under $3bn at the time of the transaction.

It also means his stake is four time bigger than Twitter founder Jack Dorsey’s 2.25% holding. Mr Musk is worth $300 billion – almost 10 times the value of Twitter at the time of the transaction.

Shares in Twitter last night closed up by 78 cents, or 1.7% at $47.01, valuing the company at $37bn.

The announcement that he would not be joining the board was tweeted by Twitter chief executive Parag Agrawal. It came after Musk suggested making the platform advertisement-free. Nearly 90% of Twitter’s 2021 revenue came from adverts.

He also asked his more than 81m followers whether Twitter is “dying” and if its headquarters should be turned into a homeless shelter.

“Elon’s appointment to the board was to become officially effective on 4/9, but Elon shared that same morning that he would not be joining the board,” Agrawal said in a note originally sent to Tesla employees.

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