According to the New York Times reported on April 5, local time on Tuesday, the US social media giant Twitter (Twitter) announced that elon Musk, the founder and CEO of Tesla, now 50, will be appointed as one of the company's 11-member board of directors, and the term of office will end in 2024. Prior to this, news on Monday was that Musk had bought a 9.2 percent stake in Twitter, becoming its largest shareholder.
Screenshot of the New York Times report
CNBC reported that a regulatory filing disclosed that the shares were worth more than $3 billion. Jack Dorsey, the former CEO of Twitter and one of Twitter's founders, owns just over 2 percent of the stock. Dorsey resigned as CEO in November 2021 and will leave Twitter's board after his term ends in May.
In a separate regulatory filing, Twitter revealed that Musk's term on the board will last until 2024, which will make him a more influential figure within Twitter than Dorsey.
On Tuesday, local time, Twitter CEO Parag Agrawal issued a statement saying: "Through our conversations with Elon in recent weeks, we clearly recognize that he will bring great value to our board. ”
Source: Visual China
On the same day, Musk, who has more than 80 million followers on Twitter, also posted: "Looking forward to working with Agravar and Twitter's board to make significant improvements for Twitter in the coming months!" ”
ON MARCH 26, Musk accused the platform of "failing to uphold the principle of free speech" on Twitter, saying he was "seriously considering" building his own social media platform, ACCORDING TO CNBC.
A regulatory filing with the U.S. Securities and Exchange Commission (SEC) shows that as of March 14, Musk has cumulatively acquired a 5 percent stake in Twitter, meaning he was already Twitter's largest outside shareholder when he spoke publicly about his personal idea of transforming the social platform.
On Tuesday, local time, Twitter pointed out that Musk's shareholding ratio cannot exceed 14.9% during its board tenure, but analysts revealed to CNBC that Musk may still consider increasing his shares over time. Investors seem to be betting that Musk will eventually be able to take control of Twitter. After the news broke, on Monday, local time, Twitter's stock price soared 27%, and on Tuesday, Twitter announced that Musk became a board member, and the stock price continued to climb.
According to the report, a Twitter spokesperson said Musk would not meddle in the company's policymaking. Day-to-day policy decisions will still be made by Twitter employees.
(Editor: GH)