Elon Musk will be a part of Twitter’s board of administrators only a day after it was realized that he purchased a 9% stake within the firm — turning into the social media platform’s largest shareholder.
“I’m excited to share that we’re appointing @elonmusk to our board!” Twitter CEO Parag Agrawal tweeted on Tuesday.
“By way of conversations with Elon in latest weeks, it grew to become clear to us that he would carry nice worth to our Board.”
Agrawal added: “He’s each a passionate believer and intense critic of the service which is precisely what we’d like on @Twitter, and within the boardroom, to make us stronger within the long-term. Welcome Elon!”
Musk responded to Agrawal: “Wanting ahead to working with Parag & Twitter board to make vital enhancements to Twitter in coming months!”
Musk is taking a 9.2% stake in Twitter simply days after Tesla’s billionaire CEO criticized the social community for stifling free speech and publicly mused about making a rival platform.
An SEC submitting revealed on Monday that Musk — the world’s richest individual with a fortune of greater than $287 billion, based on Forbes — purchased some 73.5 million shares of the corporate, that are price an estimated $2.89 billion.
Wanting ahead to working with Parag & Twitter board to make vital enhancements to Twitter in coming months!
— Elon Musk (@elonmusk) April 5, 2022
Information of the acquisition — which makes Musk Twitter’s largest shareholder, forward of Vanguard, Morgan Stanley and BlackRock.
Twitter inventory was up by greater than 25% in pre-market buying and selling on Tuesday.
Musk has been elevating questions in regards to the skill to speak freely on Twitter, tweeting final month about free speech and the social media platform.
“Free speech is crucial to a functioning democracy. Do you imagine Twitter rigorously adheres to this precept?” he tweeted.
Musk filed papers with the SEC indicating that he bought a 9% stake in Twitter.Bloomberg by way of Getty Photos
The following day, Musk took it a step additional, writing: “On condition that Twitter serves because the de facto public city sq., failing to stick to free speech rules essentially undermines democracy. What must be finished?”
In a separate tweet, Musk mentioned that he was “giving severe thought” to creating a brand new social media platform.
Resulting from Twitter’s share construction, Musk’s stake within the firm will give him way more affect over the location’s operations than will be exerted by exterior traders in tech giants like Meta or Google.
Earlier than buying the most important stake in Twitter, Musk was important of the businesses insurance policies as they relate to free speech.SOPA Photos/LightRocket by way of Getty Photos
Whereas Mark Zuckerberg holds particular dual-class shares that successfully permit him to override Meta traders’ objections and do no matter he needs, Twitter solely has one class of shares. Which means Twitter shares held by founder Jack Dorsey give Dorsey the identical voting energy as shares held by Musk.
In an indication of the facility that may be wielded by Twitter traders, Dorsey stepped down as Twitter’s CEO in 2021 following a heated activist marketing campaign from shareholder Elliott Administration. Elliott held round 4% of Twitter shares on the time — lower than half of Musk’s present stake.