After purchasing a massive 9.2% stake in Twitter, Elon Musk is set to join the social media company's board of directors. Upon purchase, Twitter shares increased by over 7%.
Twitter CEO Says Musk will Bring Great Value to Their Board
Parag Agrawal, the new CEO of Twitter (after Jack Dorsey), tweeted that he had talked with the Tesla CEO over the course of the recent weeks, and as per the CEO, Musk will be bringing "great value to our Board."
The Twitter CEO noted that the CEO of Tesla is both an intense critic and a passionate believer of the service, noting that it was "what we need on Twitter." Twitter CEO also noted that Musk would make the company stronger in the long term.
Looking forward to working with Parag & Twitter board to make significant improvements to Twitter in coming months!
— Elon Musk (@elonmusk) April 5, 2022
Jack Dorsey Celebrates Musk's Move to Join Twitter's Board
Former CEO Jack Dorsey joined the celebration saying Musk has great care about the world as well as the role of Twitter in it. In addition, a filing with the SEC reveals that 2024 is when Musk's term is expected to expire.
As per the filing, along the course of the Tesla CEO's whole board term or 90 days after, Musk won't be able to own more than 14.9% of common Twitter stock outstanding. According to the story by CNBC, the purchase comes after Musk launched a poll regarding Twitter's adherence to free speech principles.
I’m really happy Elon is joining the Twitter board! He cares deeply about our world and Twitter’s role in it.
— jack (@jack) April 5, 2022
Parag and Elon both lead with their hearts, and they will be an incredible team. https://t.co/T4rWEJFAes
Tesla CEO Says He's Excited to Work with Parag and the Whole Twitter Board
During that time, other statements from the Tesla CEO included him considering creating a whole new social media platform. Shortly after the announcement that Musk would be named to the board, he stated that he would be pushing for product adjustments.
Musk says he is excited to work with Parag and the whole Twitter board to push for significant improvements over the course of the next few months. Although Musk has the largest stake among outside shareholders, he is still considered a passive interest meaning he won't try to control or influence the company.
Read Also : Elon Musk to Host 'Biggest Party on Earth'? Expects 15k People to Be Invited to the 'Cyber Rodeo'
Musk Launches Poll After Revelation of Him Joining Twitter's Board
According to CNBC, however, some investors still look at this purchase as an aggressive stance. After the announcement of Musk's stake, the Twitter stock grew by a whopping 27%, making it the company's new all-time high since its initial IPO.
Shortly after joining the board with his holdings revealed, the Tesla CEO launched a poll asking users if they would favor an "edit button." This was then shortly retweeted by Agrawal, saying people should vote carefully since the results are important.
The consequences of this poll will be important. Please vote carefully. https://t.co/UDJIvznALB
— Parag Agrawal (@paraga) April 5, 2022
The investment from Tesla CEO comes after Dorsey passed the crown to Agrawal in November 2021 as the former CEO wanted to pursue other endeavors. As per the Twitter CEO, more focus would be given to accelerating the company's work to bring in new products and other metrics.
Related Article: Elon Musk Asks Twitter Users If They Want the Long-Awaited EDIT Button
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