After abruptly purchasing a 9.2% stake in Twitter Inc. to become the company’s largest individual shareholder this week, tech billionaire and noted Twitter critic Elon Musk is now set to join the company’s board of directors.
What are the details?
In a Securities and Exchange Commission filing on Monday, the company announced its intention to appoint the Tesla founder and CEO to serve as a Class II director with a term currently set to expire in 2024 at the company’s annual stockholders’ meeting.
As a part of the agreement, Musk is prohibited from becoming the owner of more than 14.9% of the company’s common stock.
Twitter CEO Parag Agrawal also announced Musk’s addition to the board in a pair of tweets Tuesday, saying, “Through conversations with Elon in recent weeks, it became clear to us that he would bring great value to our Board.”
Heu2019s both a passionate believer and intense critic of the service which is exactly what we need on @Twitter, and in the boardroom, to make us stronger in the long-term. Welcome Elon!
— Parag Agrawal (@Parag Agrawal)
Agrawal seemed to welcome Musk’s appointment, noting he is “both a passionate believer and intense critic of the service,” adding, “which is exactly what we need on @Twitter, and in the boardroom, to make us stronger in the long-term.”
In recent weeks, Musk has become more outspoken in his criticism of the social media platform, known for its blatant censorship of voices that stray from the progressive left-wing dogma.
Last month, he posted a poll on the platform asking users whether they believed it was adhering to the principles of free speech, and users responded with a resounding “no.” Later, he suggested that he was putting serious thought into starting a new social media company that would rival Twitter.
Musk’s “new platform” suggestion elicited a raft of responses from users, many of whom implored the billionaire to buy Twitter and make it better.
In a tweet response to news of his appointment to the board, Musk teased that “significant improvements” would soon be made to the platform.
Hours earlier, just after his nearly $3 billion stock purchase was made public, Musk mused about the addition of an edit button on the platform in another poll.
Agrawal retweeted the post, noting the “consequences of this poll will be important” and asking users to “please vote carefully.”
Twitter’s stock price soared following news of Musk’s 73.5 million-share purchase on Monday, and the sticker price kept ascending on Tuesday after his board appointment was announced.
Prior to his board appointment, analysts hadn’t ruled out the notion that Musk could use his staggering wealth to complete a total buyout of the company.
It’s possible, and perhaps likely, that Twitter executives warded off such a scenario by agreeing to add Musk to the company’s board of directors with a share percentage limit.