Twitter will appoint Tesla founder Elon Musk to its board of directors after he became the company’s biggest stakeholder, The Verge reports.
Twitter revealed in a Securities and Exchange Commission filing that Musk will serve as a class II director until 2024.
Musk is banned from owning more than 15% of the company’s stock, according to the filing.
“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% of the Company’s common stock outstanding at such time, including for these purposes economic exposure through derivative securities, swaps, or hedging transactions,” the filing said.
Twitter CEO Parag Agrawal confirmed the report, calling Musk “both a passionate believer and intense critic of the service.”
Musk on Twitter said he looks forward “to making significant improvements to Twitter in coming months!”
Musk buys 9.2%:
Musk announced on Monday that he purchased a 9.2% stake in the social network after a long history of complaints about the company.
The purchase immediately made Musk the company’s biggest shareholder.
Musk after the news posted a Twitter poll asking users to vote on whether the network should add an “edit” button.
Agrawal replied by tweeting “the consequences of this poll will be important,” and he warned users to “vote carefully.”
Twitter stock rises:
Twitter stock rose 27% after the news of Musk’s investment.
His 9.2% stake rose in value from $2.89 billion on Friday to $3.67 billion on Monday.
It’s unclear what Musk plans to do with his board seat after regularly criticizing Twitter and complaining that it was infringing on “free speech.”
Some analysts predicted that Musk, one of the wealthiest men in the world, could move to buy out a majority stake of the company, though he is barred from doing so until next year.