Elon Musk joins Twitter’s board of directors after becoming its largest shareholder

Tesla CEO Elon Musk joins Twitter’s board of directors, a day after it was announced that he owns a 9.2% stake in the social media platform.

Twitter Inc. said in a regulatory filing on Tuesday that it reached an agreement with Musk on Monday that gives the billionaire a seat on its board of directors, with a term expiring at the 2024 annual meeting.

“Through discussions with Elon over the past few weeks, we have realized that he will bring great value to our board,” Twitter CEO Parag Agrawal said Tuesday morning.

Twitter’s stock is up 35% since Musk announced he’s bought a stake in the social media company, adding $980 million to Musk’s fortune. The Tesla leader often uses Twitter to communicate with his 80 million followers, which sometimes gets him into trouble. A Series of spontaneous tweets on Tesla’s 2018 privatization prompted US securities regulators to appoint a Twitter babysitter for Musk to review everything the CEO posts about his company.

Musk is expected to push Twitter on free speech issues, an issue he has been open about. Twitter is among several social media platforms trying to strike a balance between free speech and censorship of content deemed hateful, harmful, or inaccurate.

Last month, Musk openly considered launching his own social media platform. “Given that Twitter serves as a de facto public marketplace, failure to uphold the principles of free speech fundamentally undermines democracy. What should be done?” he said.

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His involvement with Twitter comes at a time when company founder Jack Dorsey was pushing the idea of ​​an open-source media platform with few controls.

“[W]We believe a key driver for this investment is Mr. Musk’s desire to transform the platform and make it open-source with fewer intermediate controls,” analysts at Truist Securities said in a research note. “Considering what a small investment this is for him (~1% of net worth), we wouldn’t be surprised if he increased his stake even further and potentially took a more active role in decision-making within the company.”

Musk may not, alone or as a member of any group, own more than 14.9% of Twitter’s outstanding shares while on the board and 90 days thereafter.

His 9% stake makes him the largest shareholder in Twitter. in one tweetMusk said he looks forward to making “significant improvements to Twitter over the coming months”!

The Associated Press contributed to the coverage.

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