Elon Musk will join Twitter's board of directors after the world's richest man bought a 9.2% stake in the social media company, the blue bird. The news immediately made Twitter shares rise on Tuesday (5/4/2022).
"I am pleased to share that we appointed @elonmusk to the board of directors. Through conversations with Elon in the last few weeks, it has become clear to us that he will bring great value to our Board," CEO Parag Agrawal said in a tweet.
"He is a huge believer in and critical of service which is exactly what we need on Twitter, and in the boardroom, to make us stronger in the long term," Agrawal added.
In response, Musk replied, "Looking forward to working with Parag & Twitter to make significant improvements to Twitter in the coming months."
Looking forward to working with Parag & Twitter board to make significant improvements to Twitter in coming months!
— Elon Musk (@elonmusk) April 5, 2022
Former CEO Jack Dorsey also responded to Agrawal's tweet. Dorsey praised Twitter for appointing Elon Musk to its board of directors.
He said in a tweet that Musk "cares deeply about our world and Twitter's role in it."
"I've been wanting Elon to be on the board for a long time," Dorsey later added.
I'm really happy Elon is joining the Twitter board! He cares deeply about our world and Twitter's role in it.
Parag and Elon both lead with their hearts, and they will be an incredible team. https://t.co/T4rWEJFAes
— jack⚡️ (@jack) April 5, 2022
According to CNBC, Musk's term will end in 2024, according to SEC filings. During his tenure on the board or 90 days after that, the father of X A-12 is not allowed to own more than 14.9% shares.
As is well known, Musk is the largest shareholder in Twitter. Some see this as a passive interest, which often means the shareholder is not trying to control or influence the company. However, some investors expect Musk to take an aggressive stance.
Evidently, a few hours after his ownership in the company was revealed, Musk tweeted a poll related to the edit feature on Twitter. Agrawal immediately responded to the post and urged people to "choose carefully" because the consequences "will be important."