New Delhi: Tesla founder and CEO Elon Musk will join Twitter’s board of directors after disclosing a large stake in the social media platform. Microblogging site Twitter gave this information on Tuesday. In fact, Twitter shares rose nearly 28 percent on Monday after regulatory filings in the US revealed that Tesla and SpaceX CEO Elon Musk holds a 9.2 percent passive stake in the Parag Agarwal-run platform.
Twitter Inc. said in a regulatory filing that it reached an agreement with Musk on Monday that would give the billionaire a seat on its board, which expires at the 2024 annual shareholders meeting. Musk will not be allowed to own more than 14.9 percent of Twitter’s outstanding stock, either alone or as a member of a group, as long as he is a member of the board and after 90 days.
Parag welcomes Musk to the Twitter board, Tesla CEO responded
Welcoming Musk to the board, Twitter CEO Parag Agarwal said, “I am excited to share that we are appointing Elon Musk to our board! Through conversations with Allen in recent weeks, it became clear to us that he would be of great importance to our Board.” Musk then replied, “Looking forward to working with Parag and the Twitter board to make significant improvements to Twitter over the coming months!”
Elon Musk bought nearly 73.5 million shares of Twitter
According to a regulatory filing with the US Securities and Exchange Commission (SEC), Elon Musk, one of the world’s richest men, who has more than 80 million followers on Twitter, bought about 73.5 million shares in the microblogging platform.
Last month, Musk said he was looking at creating a new social media platform. Responding to a user on the microblogging site, he wrote, “Seriously considering it.” Musk has been a vocal critic of social media platforms including Twitter. In a Twitter poll, Musk asked, “Do you believe Twitter strictly adheres to this principle? To which at least ’70 percent of the respondents said ‘no’.
