Twitter Inc said on Tuesday that it will appoint Elon Musk, CEO of Tesla, to its board of directors, a day after the billionaire revealed a major interest in the social media business.
The position may temporarily preclude Musk from making an urgent takeover play, as analysts and investors predicted when he disclosed a 9.2 percent interest worth almost $3 billion.
Musk cannot possess more than 14.9 percent of Twitter’s common stock as an individual shareholder or as a member of a group as long as he is the company’s director, according to a filing.
‘I’m thrilled to announce that we’ve appointed @elonmusk to our board,’ Agrawal wrote in a tweet. ‘He’s a fervent supporter as well as a harsh critic of the service, which is precisely what we need on @Twitter and in the boardroom to make us stronger in the long run.’
Musk responded on Twitter, saying, ‘Looking forward to working with Parag and the Twitter board to bring big changes to Twitter in the coming months.’
Musk, who describes himself as a free-speech absolutist, has been critical of the social media site and its policies, and recently conducted a Twitter poll in which users were asked whether they believed the network adhered to the principle of free expression.
After revealing his investment on Monday, Musk launched another Twitter poll, this time asking followers if they want an edit button, a long-awaited feature on which the social media network has been working.
‘Elon Musk should never be underestimated. I’m curious about the fundamental motivations.’ Gerald Goldberg, CEO of GYL Financial Synergies, a registered investment adviser whose customers own shares in both Twitter and Tesla, agreed.
‘I believe he’s sending a message to the SEC saying, ‘I’m going to do what I want.”
Twitter shares rose 6% in pre-market trade before the opening bell, after closing up more than 27 percent on Monday.
Musk, a frequent Twitter user, has made a number of announcements to his over 80 million followers, including his plan to take Tesla private, which got him in hot water with the US Securities and Exchange Commission.
Musk revealed on Monday that he owns 73.5 million Twitter shares through the Elon Musk Revocable Trust, of which he is the sole trustee.
According to the business, Musk will participate in the director benefits arrangements applicable to non-employee directors and serve as a Class II director, with his term terminating at Twitter’s 2024 annual meeting of stockholders.
The world’s wealthiest man will also serve on the board of UFC-owner Endeavor until June 30, but he stepped down from the board of tech non-profit OpenAI, which he co-founded, in 2018.
He is also the founder and CEO of SpaceX, as well as the creator and CEO of the brain-chip startup Neuralink and the infrastructure firm the Boring Company.