Elon Musk, Tesla Inc’s chief executive officer, promised that there would be “significant” improvement at the company. Twitter Inc (NYSE:) Tuesday after Micro-blogging Site announced its plans to announce the appointment of him to the board.
However, Musk’s potential takeover plans may be blocked by his appointment. Musk cannot have more than 14.9% in Twitter stock as either an individual shareholder or a member of any group, as long as the board is full.
Musk’s Tuesday disclosure of a 9.2% interest in Twitter has sparked widespread speculation. This could have been a takeover or an active share.
Parag Agrawal, Twitter’s CEO said that he was excited to announce the appointment of @elonmusk as a member to his board. He’s both an intense critic and a believer in Twitter, which is precisely what we need in @Twitter and the boardroom to be stronger long-term.
In response, Musk tweeted: “Looking forward to working with Parag & Twitter board to make significant improvements to Twitter in coming months.”
Musk has not provided any details about the plans of the company. The company is having trouble boosting active users and pursuing new projects to overcome its long-standing stagnation.
Musk calls himself an absolute free-speech advocate and has often criticised the policies and social media platforms. Recently, a Twitter survey asked users to rate their opinion on whether the platform adheres the principle of freedom speech.
Musk made it public on Twitter Monday after revealing his stake. He asked users whether they wanted an edit button. It is a long-awaited function that the social media platform uses.
Susannah Streeter senior analyst stated that “news that he will be taking up a position on the board will lead to expectation that he desires, and will have greater participation in decision-making at the social networking.” Hargreaves Lansdown (LON)
Musk may be nervous about having too much control over Twitter’s management, which could lead to him feeling anxious about his ability to enhance his brand.
Following Monday’s close of trading at over 27%, shares in Twitter surged by 4%.
Musk, who is an avid Twitter user, has made several announcements to over 80,000,000 of his followers.
Musk will be a director under the non-employee director benefit arrangements and as a Class 2 director. The term is set to expire at the 2024 annual meeting for stockholders of Twitter, according to the company.
Endeavor will have the world’s wealthiest man as a member of its board until June 30, but he has left OpenAI (the tech nonprofit he founded in 2018) and is now the chairman of their board.
SpaceX’s founder and CEO is also him. He leads the Boring Company and Neuralink, a brain-chip startup.
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