July 6, 2022

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Elon Musk joins Twitter board

Twitter stated in a regulatory submitting on Tuesday that it plans to nominate the CEO of Tesla and SpaceX to its board of administrators for a time period that ends in 2024. As a part of the deal, Musk agreed to not purchase greater than 14.9% of the corporate’s shares whereas he stays on the board.

On Monday, Twitter stated in a submitting that Musk had purchased 9.2% of its shares. The information got here as a little bit of a shock, after Musk had tweeted a number of occasions over the previous few weeks criticizing the corporate’s insurance policies and questioning if a brand new social media platform was wanted.

“Excited to announce that we’re appointing @elonmusk to our Board of Administrators!” Twitter CEO Parag Agrawal stated in a Tweeter Tuesday. “Via conversations with Elon over the previous few weeks, it has turn into clear to us that he’ll convey nice worth to our board.”
Agrawal Noted that Musk is each a “passionate believer” and an “intense critic” of the corporate, and that he believed Musk’s presence within the boardroom would add long-term worth. Twitter co-founder and former CEO Jack Dorsey additionally appeared to welcome the information, noting that Musk “cares deeply about our world and Twitter’s function in it,” and that Musk and Agrawal “might be an incredible group.”
Musk tweeted he “appears ahead to working with the Parag & Twitter board to ship significant enhancements to Twitter within the months forward!
It’s not completely clear what enhancements Musk envisions. In latest weeks, Musk has advised on Twitter that the platform doesn’t enable sufficient free speech, and stated he ought to make his algorithm open supply. Monday night, he additionally surveyed his followers to seek out out in the event that they “need an edit button,” a long-standing, albeit controversial, function request from many Twitter customers.

After hovering greater than 27% on Monday on information of Musk’s inventory buy, Twitter shares gained one other 5% on Tuesday morning.

Twitter has turn into an vital a part of Musk’s private model. He’s used the positioning to attach along with his legions of followers and to supply his ideas on the whole lot from Tesla’s inventory value to present occasions. However his presence on the platform has additionally gotten him in sizzling water, together with when tweets about presumably taking Tesla personal led to a Securities and Trade Fee lawsuit and settlement requiring him to pre- evaluate some tweets in regards to the firm.

Musk’s presence on the board might be a drag on no matter plans Agrawal, who has been Twitter’s CEO for lower than six months, had for the corporate.

“It’s time to interrupt out the popcorn and watch developments over the following few months with Musk on the board,” Wedbush analyst Dan Ives stated in a notice to buyers on Tuesday. He added that Musk’s arrival on the board may “result in a bunch of strategic initiatives that might embody a spread of short- and long-term alternatives for the corporate which remains to be struggling in an arms race over social networks”.