Twitter confirms plans to appoint Elon Musk to its board of directors, after disclosure he is now the platform’s largest shareholder
Elon Musk odyssey with Twitter continues, after the platform confirmed plans to appoint the Tesla and SpaceX CEO to its board of directors.
Twitter made the announcement in a regulatory filing Tuesday, and the filing revealed an interesting clause that could explain the move.
“The Company will appoint Mr. Musk to the Company’s Board of Directors (the “Board”) to serve as a Class II director with a term expiring at the Company’s 2024 Annual Meeting of Stockholders,” said Twitter in the filing.
“For so long as Mr. Musk is serving on the Board and for 90 days thereafter, Mr. Musk will not, either alone or as a member of a group, become the beneficial owner of more than 14.9 percent of the Company’s common stock outstanding at such time, including for these purposes economic exposure through derivative securities, swaps, or hedging transactions.”
So Musk will serve on the board until 2024, but he has agreed not to acquire more than 14.9 percent of the company’s shares while he remains on the board.
On Monday it was revealed Musk had acquired a 9.2 percent stake in Twitter, at a cost of $3 billion (£2.3bn).
Twitter CEO Parag Agrawal said it was clear that Elon Musk would bring “great value to our Board.”
I’m excited to share that we’re appointing @elonmusk to our board! Through conversations with Elon in recent weeks, it became clear to us that he would bring great value to our Board.
— Parag Agrawal (@paraga) April 5, 2022
Musk responded, saying he was looking forward to working with Parad and Twitter board.
Looking forward to working with Parag & Twitter board to make significant improvements to Twitter in coming months!
— Elon Musk (@elonmusk) April 5, 2022
Within hours of Musk acquiring the largest shareholding in Twitter, the Tesla boss had asked Twitter users whether they want an edit button, but Parag Agrawal asked people to vote carefully.
It should be noted that on 1 April (April Fools’ Day), Twitter had tweeted a message on its official account, saying it was working on the long-awaited “edit” feature.
Last week Musk had spoken out against his favoured communication outlet when he said he was giving “serious thought” to building a rival platform, while questioning Twitter’s commitment to free speech.