Elon Musk will not be joining Twitter Inc.’s board of directors after all.
In a tweet Sunday night, Twitter TWTR, +1.69% Chief Executive Parag Agrawal said Musk “has decided not to join our board.”
Musk’s addition to Twitter’s board was announced Tuesday following disclosures that he has become the social-media company’s largest individual shareholder, with a 9.2% stake.
Twitter’s stock fell 2.3% in premarket trading Monday, after soaring 17.6% last week. Tesla shares dropped 3.7% in Monday’s premarket.
It was unclear why Musk, the CEO of Tesla Inc. TSLA, -4.83% and SpaceX, refused the board seat. Adding Musk would have restricted how big a stake in the company he could own. Musk could now do anything from selling his stake to potentially pursuing a hostile takeover of the company. Twitter’s investor page still listed him as a board member as of late Sunday night.
Musk did not immediately comment about the latest development, but tweeted a giggling emoji Sunday night.
“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,” Agrawal said.
Agrawal said in his tweet that while he and the board had been “excited” to add Musk, “I believe this is for the best,” adding that “Elon is out biggest shareholder and we will remain open to his input.”
Musk’s input was at full force over the weekend, as he asked if Twitter was dying and tweeted a number of ways Twitter could improve its service, including authentication checkmarks for Twitter Blue subscribers, no ads and a lower price for the paid tier, and accepting payments in dogecoin DOGEUSD, -0.95%.
Musk also floated the idea of turning Twitter’s San Francisco headquarters into a homeless shelter “since no one shows up anyway.” Twitter said last year that its employees could work from home indefinitely.
Twitter shares shot nearly 18% higher last week, including a record 27% jump Tuesday after Musk’s stake was announced. Twitter is up 7% year to date, but down 35% over the past 12 months.