Ilona Maska’s Twitter profile, shown on a computer screen, and the Twitter logo displayed on the phone screen, can be seen in this illustration made in Krakow, Poland on April 9, 2022.

Jakub Porzycki | Nurfota | Getty Images

Shares of Twitter fell in pre-market trading on Monday after CEO Parag Agraval revealed that Elon Musk had abandoned his plan to join the company’s board of directors.

Shares of the social networking company briefly fell more than 8% to less than $ 43 per share at 4 a.m. ET before recovering slightly. At 8 a.m. ET, shares fell 2.66% to $ 45.

On April 5, Musk and Twitter announced that he would join the Twitter board. The day before, the CEO of Tesla and SpaceX revealed through financial documents that he is the largest shareholder of Twitter, which owns 9.2% of the company.

Musk would have been appointed to the Twitter board on Saturday, but the richest man in the world told the company that day that he would not actually take a seat on the board. The investor relations Twitter page has not yet been updated, and Musk is still on the board.

“Elon has decided not to join our council,” Agraval wrote on Twitter on Sunday. “I sent a short note to the company, sharing it with you all here.”

In a note, Agraval said Musk remains Twitter’s largest shareholder and the company will remain open to his contributions.

“We were happy to cooperate and explain the risks,” he wrote. “We also believed that the best way forward would be to have Ilona as a trustee of the company, where he, like all members of the board of directors, should act in the interests of the company and all our shareholders.”

The CEO of Twitter did not say whether Musk gave specific reasons in order to change his mind about making new commitments, or whether it was entirely Musk’s decision.

Had Musk joined the board, he would not have been able to acquire more than 14.9% of the company’s stock. Now that he no longer joins the board, he can theoretically increase his bet if he wants. Some industry experts have speculated on Twitter that now he could try to take over the company and rebuild it the way he wanted.

Chronology of events

More serious offers from Mask included allowing Twitter Blue subscribers to pay with dogecoin, get a “authentication” checkbox, and leave Twitter Blue unadvertised.

“Everyone who subscribes to Twitter Blue (i.e. pays $ 3 a month) should get an authentication check mark,” Musk wrote. “And no advertising. The ability of corporations to dictate policy is greatly enhanced when Twitter relies on advertising money to survive. ”

Musk also suggested Twitter turn the San Francisco headquarters office into a homeless shelter, “because no one shows up anyway.”

He also suggested that the number of Twitter users is inflated by bots, and at one point asked if Twitter was dying.

Additional report by Lori Deck.