Tesla CEO to join social media company’s board of directors after becoming largest shareholder
Mr. 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.
Twitter CEO Parag Agrawal said in a tweet that the company had spoken to Mr. Musk in recent weeks and “it became clear to us that he would bring great value to our board.”
“He is both a passionate believer and an intense critic of the service, which is exactly what we need on @Twitter and in the boardroom to make us stronger in the long run,” he said.
Placing Mr. Musk on Twitter’s board and limiting the amount of shares he can acquire as a director may be a strategic move on Twitter’s part, as Mr. Musk has become its largest shareholder and has openly questioned the social media platform’s commitment to free speech and the First Amendment. .
Mr Musk, who has 80 million Twitter followers, bought 73.5 million shares, worth about $3 billion ($3.9 billion).
He also raised the possibility, with his massive and loyal following on Twitter, that he could create a rival social media network.
Mr. Musk did not speak specifically about any Twitter rule changes he might be pushing. He tweeted on Tuesday that he wanted to make “meaningful improvements to Twitter in the coming months!”
Late Monday, he launched a poll asking if users wanted an edit button, misspelled “yes” as “yse.”
In March, Mr Musk told his millions of Twitter followers that he was ‘seriously considering’ creating his own social media platform and had repeatedly clashed with financial regulators over his use of Twitter.
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Mr Musk is locked in a bitter row with the SEC over his ability to post on Twitter. His attorney has argued in court filings that the SEC is infringing on the Tesla CEO’s First Amendment rights.
Shares of Twitter rose more than 6% before the market opened.