A day after purchasing a 9.2% passive stake in Twitter, Tesla CEO and SpaceX founder Elon Musk has been designated as one of Twitter’s Board of Directors in a deal that would prohibit him from owning more than 14.9% of the media giant’s common stock.
Twitter Chief Executive Officer, Parag Agrawal, announced on Tuesday that they will appoint Elon Musk to their Board of Directors serving as a Class II Director saying “he would bring great value to our Board.”
“I’m excited to share that we’re appointing @elonmusk to our board! Through conversations with Elon in recent weeks, it became clear to us that he would bring great value to our Board,” said Agrawal in a tweet.
Elon Musk immediately responded and promised to make ‘significant improvements’ to the biased social media platform in the coming months.
“Looking forward to working with Parag & Twitter board to make significant improvements to Twitter in coming months!” Musk responded.
According to Twitter’s filing published on Tuesday by the Securities and Exchange Commission, “For so long as Mr. Musk is serving on the Board and for 90 days thereafter, Mr. Musk will not, either alone or as a member of a group, become the beneficial owner of more than 14.9 percent of the Company’s common stock outstanding at such time, including for these purposes economic exposure through derivative securities, swaps, or hedging transactions.”
On Monday, it was revealed that Elon Musk becomes Twitter’s biggest shareholder after purchasing $2.89 billion worth of stock, according to a regulatory filing revealed on Monday by the Securities and Exchange Commission.
According to the SEC filing, Musk now holds a 9.2% passive stake in the social media giant. He owns 73,486,938 shares of common stock out of 800,641,166 Twitter shares. That means, Musk now owns nearly 10% of Twitter.