Elon Musk joins Twitter board after becoming largest shareholder

Tesla CEO Elon Musk is joining Twitter’s board, a day after revealing he has a 9.2% stake in the social media platform.

Twitter Inc. said in a regulatory filing on Tuesday that it reached an agreement with Musk on Monday that would give the billionaire a seat on its board of directors, with the term expiring at its 2024 annual meeting of shareholders.

“Through conversations with Elon over the past few weeks, it became clear to us that he would bring great value to our board,” Twitter CEO Parag Agrawal said Tuesday morning.

Twitter’s stock has gained 35% since Musk revealed he took a stake in the social media company, adding $980 million to Musk’s fortune. The Tesla leader frequently uses Twitter to communicate with his 80 million followers, sometimes getting him into trouble. A series of improvised tweets over Tesla’s 2018 privatization, U.S. securities regulators appointed a Twitter babysitter for Musk to review everything the CEO posts about his company.

Musk is expected to push Twitter on free speech issues, a topic he has been outspoken about. Twitter is among several social media platforms that attempt to strike a balance between freedom of expression and censorship of content deemed hateful, harmful or false.

Last month, Musk openly considered launching his own social media platform. “Given that Twitter serves as the de facto town square, failure to adhere to the principles of free speech fundamentally undermines democracy. What should be done?” he said.

SpaceX’s Starlink internet satellites help connect Ukrainians, but come with risks


His stake in Twitter comes at a time when the company’s founder, Jack Dorsey, is promoting the idea of ​​an open-source media platform with few controls.

“[W]We believe a key driver of this investment is Mr. Musk’s desire to redesign the platform and make it more open source with fewer checks in between,” Truist Securities analysts said in a note. research. (~1% of net worth), we wouldn’t be surprised to see him further increase his stake and potentially take on a more active role in decision-making within the company.”

Musk, alone or as part of a group, will not be permitted to own more than 14.9% of Twitter’s outstanding shares while a member of the board and for 90 days thereafter.

The 9% stake makes him Twitter’s largest shareholder. In one TweeterMusk said he looks forward to making “meaningful improvements to Twitter in the months ahead!”

The Associated Press contributed reporting.

Leave a Reply

Your email address will not be published.