Elon Musk joins the board of directors of Twitter, after becoming its main shareholder

Elon Musk joins the board of directors of Twitter, after becoming its main shareholder

Just one day after becoming the main shareholder of Twitter, after buying 9.2% of the company, Elon Musk joins the board of directors of the social network. Thus, the tycoon of South African origin will have a space among the company’s executives and will be involved in future decisions related to it.

The news was confirmed by a publication from Parag Agrawal, the CEO of Twitter. “[…] Through conversations with Elon over the past few weeks, it became clear to us that he would bring tremendous value to our board. He is a passionate believer and intense critic of service, which is exactly what we need on Twitter and in the boardroom to make us stronger for the long haul,” he said in a pair of tweets.

Although the main director of the social network did not disclose what Elon Musk’s role will be on the board of directors, something else could be known through a document filed with the United States Securities and Exchange Commission. Through an 8-K form, the firm indicated that the current CEO of Tesla and SpaceX will serve as Class II director; In turn, it was reported that his mandate will last until the annual meeting of shareholders in 2024.

It’s still not entirely clear what Elon Musk’s role will be in the day-to-day activities of Twitter, however. However, the fact that the businessman has already begun to “test” his more than 80 million followers with questions about possible future functions – such as a button to edit tweets – could be a sign of something that we may see with great interest. assiduity.

The “hidden” reason for Elon Musk to join the Twitter board

Known the news that Elon Musk had taken possession of almost 10% of Twitter, it was a matter of time before – one way or another – he joined the company. Now, that the current directors of the social network have appointed him to the board could have a “hidden” motive: that the employer does not overdo it.

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According to the document filed with the SEC, while Elon Musk is part of the board of directors, and up to 90 days after he leaves it, he will not be able to acquire more than 14.9% of the company’s common shares. that are in circulation, either individually or as part of a group. Basically, measures of this type are intended to discourage a new shareholder from taking control of the company.

Beyond that, it is a reality that Twitter will add an executive as visionary as controversial. And, how could it be otherwise, the richest man in the world has already used the social network to respond to Parag Agrawal’s ad. “Looking forward to working with Parag and the Board to make significant improvements to Twitter in the coming months!” he noted.

The inclusion of Elon Musk on the board of directors of Twitter has not gone unnoticed for jack dorsey. The founder of the social network was happy for the arrival of the businessman to the company and did not hesitate to make it public. “I’m so happy Elon is joining the Twitter board! He cares deeply about our world and Twitter’s role in it. Parag and Elon lead from the heart and will be an amazing team,” assured.

A love-hate relationship

It is impossible not to mention that the public messages between Elon Musk and Parag Agrawal seem to be more of a necessary courtesy than a genuine feeling. Let us remember that the CEO of Tesla and SpaceX has been tremendously critical of his Twitter pair in recent times, even comparing him to Joseph Stalin.

To this must be added the complaints about the supposedly growing lack of freedom of expression on the platform, and also the incorporation of certain functions (such as NFTs as a profile picture).

It will be very interesting to see how Twitter evolves with Elon Musk’s direct involvement. And from what we’ve seen in the past, It will not be strange if this relationship cannot remain free of controversy.