Elon Musk Will Now Be Joining Twitter’s Board Of Directors

Tesla CEO Elon Musk is set to join Twitter’s governing body after taking a 9.2% stake in the social media organization, as indicated by a release documented with Securities and Exchange Commission (SEC). The news sent Twitter’s shares up over 2% on Tuesday April 5.

As per Twitter’s CEO Parag Agrawal, it turned out to be obvious to their organization that Musk would carry incredible worth to their Board after a discussion with him.

“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.

Meanwhile, former head of Twitter Jack Dorsey lauded the move, saying in a tweet that Musk “cares deeply about our world and Twitter’s role in it.”

Musk’s term is set to lapse in 2024, as per a documenting with SEC. For his whole board term or 90 days later, Musk can’t be the useful owner of over 14.9% of the organization’s normal stock extraordinary.

Musk’s purchase comes after an episode of criticism targeted at the social media organization. The outspoken billionaire polled lots of people on Twitter last month about whether it sticks to free speech standards. He later said he was thinking about building a new social media platform.

After he was named to the board, Musk on Tuesday prodded he would push for modifications to the product.

“Looking forward to working with Parag & Twitter board to make significant improvements to Twitter in coming months!” Musk said in a tweet.

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Musk’s stake, while the largest among outside shareholders, is considered a passive interest, which often means the holder isn’t trying to control or influence the company. However, some investors expected Musk to take an aggressive stance. After the stake was revealed, investors pushed the stock up 27%, its best day since its IPO.

Hours after his holding in the company was revealed, Musk took to Twitter to poll users on interest in an edit button. Agrawal retweeted the post, urging people to “vote carefully” as the consequences “will be important.”

Agrawal, who took over from Dorsey in November 2021, has said he would zero in on measurements and speed up Twitter’s work to carry new products to users. He’s additionally under the gun to reach at the organization’s forceful inward objectives, including developing Twitter to 315 million monetizable daily active users before the end of 2023.

Twitter revealed 217 million monetizable day to day active users for its latest quarter.

For Twitter, they believe Musk going along with them will prompt a large group of vital initiatives which could incorporate a scope of close term and long haul prospects out of the doors for the organization actually battling in a social media arms competitions.

Musk is a devoted Twitter user with more than 80.5 million followers on the platform. Nonetheless, he has additionally landed himself in major troubles a few times over his tweets.

In 2018, Musk tweeted he had “funding secured” to take Tesla private at $420 per share, which led to litigation. Musk has since agreed to submit his public statements about Tesla’s finances and other topics to vetting by its legal counsel.

He was additionally summoned by the SEC in November 2021 after he asked as to whether he ought to sell 10% of his Tesla stock, making the shares fall.