Twitter Will Appoint American Billionaire, Elon Musk To Its Board Of Directors
Twitter Inc said on Tuesday it would name top shareholder and Tesla boss Elon Musk to its board, a day after the billionaire disclosed a 9.2% stake in the social media company.
Mr Musk cannot become the owner of more than 14.9% of Twitter’s common stock either as an individual shareholder or as a member of a group as long as he is the director of Twitter, the company said in a filing.
“I’m excited to share that we’re appointing @elonmusk to our board,” Twitter Chief Executive Officer Parag Agrawal said in a tweet. “He’s 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.”
Twitter CEO and board member Parag Agrawal said Tuesday that the company’s board had conversations with Musk “in recent weeks.”
“He’s 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!” Agrawal added.
Musk will serve as a Class II director until 2024, something that technically prevents him from taking over complete control of Twitter’s board.
Still, Musk’s stake now makes him Twitter’s largest individual shareholder. Given his frequent use of the platform, some analysts are expecting Musk, who has 80.5 million followers — nearly four times more than President Joe Biden — to command a significant presence within the company.
“Musk joining the Twitter board a key signal that Twitter is embracing Musk rather than a more hostile situation,” Dan Ives, a managing director at Wedbush Securities who covers Twitter, Tweeted Tuesday.
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