Elon Musk joins Twitter board after becoming largest shareholder

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 company — becoming 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.

“Through conversations with Elon in recent weeks, it became clear to us that he would bring great value to our Board.”

Agrawal added: “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 responded to Agrawal: “Looking forward to working with Parag & Twitter board to make significant improvements 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 particular person with a fortune of greater than $287 billion, in keeping with Forbes — purchased some 73.5 million shares of the company, that are value an estimated $2.89 billion.

News of the acquisition — which makes Musk Twitter’s largest shareholder, forward of Vanguard, Morgan Stanley and BlackRock.

Twitter stock was up by greater than 25% in pre-market buying and selling on Tuesday.

Musk has been elevating questions concerning the capacity to speak freely on Twitter, tweeting final month about free speech and the social media platform.

“Free speech is essential to a functioning democracy. Do you believe Twitter rigorously adheres to this principle?” he tweeted.

Musk filed papers with the SEC indicating that he purchased a 9% stake in Twitter.
Musk filed papers with the SEC indicating that he bought a 9% stake in Twitter.
Bloomberg by way of Getty Images

The subsequent day, Musk took it a step additional, writing: “Given that Twitter serves as the de facto public town square, failing to adhere to free speech principles fundamentally undermines democracy. What should be done?”

In a separate tweet, Musk mentioned that he was “giving serious thought” to creating a brand new social media platform.

Due to Twitter’s share structure, Musk’s stake within the company will give him way more affect over the location’s operations than may be exerted by outdoors buyers in tech giants like Meta or Google. 

Before acquiring the largest stake in Twitter, Musk was critical of the companies policies as they relate to free speech.
Before buying the largest stake in Twitter, Musk was vital of the businesses insurance policies as they relate to free speech.
SOPA Images/LightRocket by way of Getty Images

While Mark Zuckerberg holds particular dual-class shares that successfully permit him to override Meta buyers’ objections and do no matter he desires, Twitter solely has one class of shares. That means Twitter shares held by founder Jack Dorsey give Dorsey the identical voting energy as shares held by Musk. 

In an illustration of the ability that may be wielded by Twitter buyers, Dorsey stepped down as Twitter’s CEO in 2021 following a heated activist marketing campaign from shareholder Elliott Management. Elliott held round 4% of Twitter shares on the time — lower than half of Musk’s present stake. 

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