Billionaire entrepreneur Elon Musk announced he would not be joining the board of directors of Twitter Inc., but said he could work with the company on a variety of issues "without limitation," the new SEC filing has revealed.
According to the amended filing, Musk would be able to discuss the company's product and services, potential mergers, and governance issues with Twitter's board or elements of its management team.
The document said that Tesla's CEO can voice his opinions "through social media or other channels with respect to the Issuer’s business, products and service offerings."
The eccentric billionaire revealed his hefty purchase just last week, admitting that he owns around 9% of Twitter, making him the company's largest single stakeholder. In his original form submitted to the SEC, he stated that he owned the stock for investment purposes, and that he may buy more shares or sell his current holdings, per the Wall Street Journal.
However, among the media, his decision not to join Twitter's board of directors was a U-turn that placed additional doubt on his relationship with the social media platform. Musk did spend much of the weekend tweeting about the company, making comments, suggestions, and apparent jokes, many of which he has subsequently removed.
And based on the current filing, Musk stated that he has no plans or intentions to sell his shares in the firm, but he "reserves the right to change his plans at any time, as he deems appropriate, and in light of his ongoing evaluation of numerous factors."
The document further noted that these variables include market and economic conditions, Twitter's business and financial situations, Musk's liquidity needs, the attractiveness of other investment options, and other potential developments.
Analysts in the media have speculated on what Musk's decision signifies for his future involvement at Twitter. According to the WSJ report, his board term was originally intended for two years, and as long as he remained a director, he could not own more than 14.9% of the company's stock.
And indeed, the world's richest man might theoretically create an even bigger stake if he did not have a board seat.
Meanwhile, on Sunday night, Twitter CEO Parag Agrawal cautioned Twitter staff of "distractions ahead," a likely reference to Musk's criticism of the company via Twitter. He went on to say that he thought Musk's decision to leave the board seat vacant was "for the best."
However, Twitter made no mention of a "poison pill" shareholder rights plan that would cause Musk's stake to be diluted if he tried to increase it above a particular level.