Tesla CEO Elon Musk Is Taking A Seat On Twitter’s Board
Just a day after it was announced that Tesla CEO Elon Musk bought $2.9 billion of Twitter stock, the social network’s CEO Parag Agrawal has confirmed that Musk is now also taking a spot on its board.
The Verge notes that Musk will serve as a class II director until 2024 — “a type of position that can be used as an anti-takeover measure.”
It had previously been suggested that Musk’s purchase of a 9% stake in Twitter could be the beginning of a move to take control of the short-form social network, but it appears Twitter has already put things in place to prevent that from happening. At least for now.
“The Company will appoint Mr. Musk to the Company’s Board of Directors (the “Board”) to serve as a Class II director with a term expiring at the Company’s 2024 Annual Meeting of Stockholders,” the filing says. “For so long as Mr. Musk is serving on the Board and for 90 days thereafter, Mr. Musk will not, either alone or as a member of a group, become the beneficial owner of more than 14.9% of the Company’s common stock outstanding at such time, including for these purposes economic exposure through derivative securities, swaps, or hedging transactions.”
Both Agrawal and former CEO Jack Dorsey have expressed their happiness at Musk’s arrival, although it is likely to make for an interesting dynamic.
He’s both a passionate believer and intense critic of the service which is exactly what we need on @Twitter, and in the boardroom, to make us stronger in the long-term. Welcome Elon!
Musk has been critical of Twitter, particularly of late. He recently suggested that Twitter wasn’t allowing free speech, largely because it was preventing people from saying things that he agreed with.