Tesla CEO Elon Musk has been appointed to Twitter’s board a day after purchasing a 9.2 percent stake in the company. Twitter CEO Parag Agrawal made the announcement, saying Musk was a great addition to the 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.” Agrawal said.
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
According to the Verge, Musk is set to serve as a class II director, a position that can be used as an anti-take over measure, until 2024. .
“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,” the filing says.
“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% of the Company’s common stock outstanding at such time, including for these purposes economic exposure through derivative securities, swaps, or hedging transactions.”
On Monday, KahawaTungu reported that Musk had purchased a 9.2 percent stake in the company worth $2.89 billion making him largest shareholder.
The Tesla boss has been a sharp critic regarding free speech on the social media platform. Hardly a few hours after the announcement of his stake acquisition, Musk ran a poll asking users whether they would like an edit button. This is undoubtedly one of the most requested features on the bird app.
Agrawal described Musk as both a believer and a critic of the app.
“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!”