News that Elon Musk was going to join Twitter's board aroused strong feelings on all sides. Musk's fans were excited. But his critics? Not so much.However, it turns out that Musk isn't joining Twitter's board after all.So what happened? Here's what you need to know.

Musk Abruptly Declined to Join Twitter's Board

In early April, we learned that Musk has bought 9.2 % of Twitter shares. This vaulted Musk to the position of one of Twitter's largest shareholders.

It also earned Musk a seat on Twitter's board, as Twitter offered Musk a place. Talks started between both parties, and it seemed as if Musk was on course to formally join the board.

But it wasn't to be. On Monday, April 11, Twitter CEO Parag Agrawal, tweeted that Musk had declined to join its board. The text was lengthy, tense, and hinted at potential drama behind the scenes.

Why Did Musk Reject His Spot On the Board?

Elon Musk's controversial tweets reveal his passion for interacting on Twitter. With the kind of wealth he has, perhaps he also dreams about owning such an app himself?

But building a social media app is hard, as seen by Donald Trump's attempt to launch his own version of Twitter.

The smart move for a wealthy Twitter addict like Musk is to just buy it—or influence it. Getting on the board would have been a strategic first step. So why did Musk opt out?

Well, everywhere you look, there are clues. Here are some potential reasons we think Musk declined to join the board.

1. Musk Is Keeping His Options Open

According to Bloomberg, before Twitter would allow Musk on its board, he had to agree to limit his shareholding to a maximum of 14.9%.

By staying out of the board, Musk remains free to buy up as much of Twitter as he can, if he so decides.

But don't just take our word for it. Or Bloomberg's for that matter. Musk has informed the US government that, in the future, he wants to keep his option to buy or sell shares open, as revealed by this legal statement.

2. Musk and Twitter Disagreed on Terms

According to Agrawal's tweet, as a board member and fiduciary, Musk would have to act in the best interests of the company and shareholders, and undergo a background check.

Considering Musk's tweets have affected Tesla stock values before, this would mean that he probably wouldn't be allowed to tweet things that reduce Twitter's stock value.

Whether the background check played a direct role in declining the offer is unclear. But it was mentioned in the series of events.

As Agrawal noted:

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.

3. Musk Violated the Law

As reported by The Washington Post, the law requires investors to disclose when their ownership of a company surpasses 5%. Musk's Twitter stake passed 5% on March 14, but he didn't file a disclosure form until three weeks later, when he was at almost 10%.

When Musk finally made the disclosure, Twitter's share price jumped by 30%, earning Musk an extra profit of $156 million.

If the Securities and Exchange Commission launches an investigation into the matter, Musk could be hit with penalties.

4. Backlash From Twitter Users

Elon Musk is known for his insistence on free speech. Because of this, Twitter users feared Musk would use his power on the board to reinstate former president Donald Trump's account, which was banned for violating Twitter's community guidelines.

While Musk also had many supporters cheering him on, the vociferous opposition from thousands of Twitter users certainly was not encouraging.

5. Musk Is Too Busy

Musk is the richest man in the world because he runs two of the most innovative companies in the world, namely, Tesla and SpaceX.

He also oversees other investments in companies such as The Boring Company, Neuralink, Solar City, among many others.

Musk is a busy man. Joining Twitter's board is perhaps not a big priority for him.

Watch Out Twitter, Musk Isn't Going Anywhere

Musk's 9.2% stake in Twitter is a very serious commitment. It is also a signal that he has big plans for Twitter.

Those plans are a mystery for now. But with Musk, nothing is off the table. Twitter's board probably understands this. Whatever Musk decides to do next, we will probably find out about it through a tweet.