Billionaire Elon Musk joined Twitter’s board of directors after it emerged that he became the social media company’s largest shareholder.
CEO Parag Agrawal tweeted the news after Musk’s appointment officially became part of the SEC filing. During his two years on the board and shortly thereafter, Musk is not entitled to own more than 14.9% of the company’s shares. Musk bought 9% of Twitter on March 14, paying about $ 2.9 billion, according to a SEC filing on Monday.
“Speaking with Elon over the past few weeks, it has become clear to us that he will be of great importance to our advice,” Agravali wrote.
Musk replied on Twitter: “I’m looking forward to working with the Parag & Twitter Board to make significant improvements to Twitter in the coming months!
It is unclear exactly what plans he has as an investor and when he will join the board, but he has recently been unequivocally criticized by the company for speaking out. In December last year, he published a memo comparing Agroval and co-founder Jack Dorsey with figures from Stalinist Russia. Recently, he interviewed his 80 million Twitter followers to find out if they thought they respected the free speech platform. Over 70% supported Twitter, forcing Musk to consider creating his own platform.
Agrawal described Musk as “As a staunch believer as well as 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.”
A SEC statement today said that the seat on Musk’s board of directors would be valid until the company’s 2024 annual general meeting of shareholders. This year’s meeting is scheduled for May 25.
Musk will also not be able to perform company-owned engineering directly based on the language provided in the file. While Mr. Musk is on the Board of Directors and within 90 days thereafter, Mr. Musk, alone or as a member of the Group, will not become the beneficial owner of more than 14.9% of the company’s total shares. In those moments, the press release reads, “through securities, swaps or hedging transactions produced for this purpose, including the economic impact.
Musk, who became one of the richest people on the planet with a fortune of $ 270 billion, co-founded PayPal and founded Tesla and SpaceX.
Source: Deadline
Elizabeth Cabrera is an author and journalist who writes for The Fashion Vibes. With a talent for staying up-to-date on the latest news and trends, Elizabeth is dedicated to delivering informative and engaging articles that keep readers informed on the latest developments.
