Twitter Inc said on Tuesday that it will appoint Elon Musk, CEO of Tesla, to its board of directors, a day after the billionaire disclosed a 9.2 percent interest in the social media business.
Mr Musk cannot possess more than 14.9 percent of Twitter’s common stock as an individual shareholder or as a member of a group as long as he is a director of the firm, according to a filing.
“I’m excited to share that we’re appointing @elonmusk to our board,” Twitter CEO Parag Agrawal said in a tweet. “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.”
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 will continue as a Class II director until 2024, preventing him from assuming entire control of Twitter’s board. Nonetheless, Musk’s position makes him the company’s largest individual stakeholder. Given his regular use of the platform, some experts believe Musk, who has 80.5 million followers — roughly four times that of President Joe Biden — will have a big influence within the corporation.
Musk joins Agrawal and Twitter co-founder Jack Dorsey on the board, who stood down as CEO in November.
Musk’s board position would give him a say in the company’s overall future, which he has frequently discussed on his Twitter account, where he has criticized the company’s moderation efforts. Last month, Musk warned that Twitter was a threat to democracy.
It’s unclear what improvements Musk would advocate for, but on Monday night he posted a poll asking if users wanted an edit button, an idea that Twitter leadership has already rejected.
Musk’s appointment to the board drew immediate praise from certain conservatives who claim Twitter unjustly suppresses them and have demanded for former President Donald Trump to be unbanned from the network.
Twitter’s stock price rose almost 6% in premarket trade and is up about 30% since Musk disclosed his Twitter ownership.