Elon MuskElon Musk rejected Twitter’s offer to join the board, now what’s next? Here are some predictions

At this point, you're probably well aware of the fact that Tesla and SpaceX CEO Elon Musk was about to become a board member of Twitter. But it is found that Elon rejected Twitter’s offer to join the board. What’s going on with Elon Musk and Twitter and what’s next? Let’s find out. 

Last Tuesday, Elon Musk filed documents showing he had spent US$2.8 billion to take a 9% stake in Twitter, becoming the company’s largest individual shareholder. Shortly afterward, Twitter announced he would be taking a seat on the company’s board. Along with this, Musk pitched his favorite cryptocurrency, the Dogecoin, as a payment option for users seeking to avail of Twitter Blue services. Musk was replying to a Twitter user from Argentina, who said Twitter Blue's current subscription of US$3 is as high as the cost of feeding a family in Argentina. The development comes just days after the Tesla CEO purchased a 9% stake in Twitter, making him the largest shareholder in the company. 

Twitter employees were scheduled to have Monday off, for the company's monthly “day of rest.” But Elon Musk made it hard not to think about work. Musk, the billionaire who disclosed this month he'd become the largest individual Twitter shareholder, backed away from a plan to join the company's board over the weekend. Days earlier, Chief Executive Officer Parag Agrawal had laid the groundwork for a friendly relationship by inviting Musk to join the board. The company was so confident he'd accept that it listed Musk as a board member on its investor relations website. Agrawal also organized a question-and-answer session with Musk and employees this week.

But Musk's sudden change of heart over the board seat also ignited speculation about his end game. By not joining the board, Musk, who owns just more than 9% of the company, is no longer subject to a standstill agreement that would have capped his stake at 14.9%. Elon Musk's rejection of a Twitter board seat frees him to boost his ownership stake in the social media platform and dodge obligations to promote its best interests. 

What Does Elon Want From Twitter 

This is the core question that’s been building since the news of Elon’s billion-dollar stock buy broke last week. We still don’t know why Elon bought such a large stake in Twitter or what he wants from the company. If he just wanted a say in how Twitter manages its platform, then board membership makes sense. But being a board member also comes with restrictions; there are limitations on how much stock Musk can own and what he can say, springing from a broader duty to act in the best interests of shareholders. If he wanted to muscle the company into a radically different moderation approach, then the restrictions of board members could have outweighed the benefits.

So, What’s Next?

Elon isn’t joining Twitter’s board, but with a 9% stake in the company, he’s still going to be a massively powerful voice in its future. The fact that he’s not on the board means he’s likely to exercise that power in public, whether through more financial moves or more heated criticism of the company’s choices. As Musk’s ongoing war with the SEC shows, he’s not shy about public statements that will produce wild swings in the value of a company. If he left the last week feeling put out, he’ll have lots of chances to even the score.