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Musk will join the board of directors at Twitter after he revealed a massive stake in the social media platform.
Twitter Inc said on Tuesday its top shareholder and Tesla founder Elon Musk will be appointed as one of its board directors. Musk will join the board of directors at Twitter after he revealed a massive stake in the social media platform.
On Monday, the billionaire had disclosed a 9.2 per cent stake in the social media company. Musk will serve as a Class II director, with the term expiring at Twitter’s 2024 annual meeting of stockholders.
Twitter shares surged 6 per cent in trading before the opening bell, after closing up over 27 per cent on Monday.
Also Read | Elon Musk’s Twitter poll for edit button receives reply from CEO Parag Agrawal
Twitter Inc. said in a regulatory filing that it entered into an agreement with Musk on Monday that will give the billionaire a seat on its board, with the term expiring at its 2024 annual shareholders meeting.
Musk, either alone or as a member of a group, won’t be allowed to own more than 14.9 per cent of Twitter’s outstanding stock for as long as he’s a board member and for 90 days after.
Welcoming Musk on board, Twitter chief executive officer Parag Agrawal said, “I’m excited to share that we’re appointing @elonmusk to our board! Through conversations with Elon in recent weeks, it became clear to us that he would bring great value to our Board.”
To which, Musk replied, “Looking forward to working with Parag & Twitter board to make significant improvements to Twitter in coming months!”
(With inputs from agencies)
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