Elon Musk joins the Twitter team.
Company Announced the appointment On Tuesday, a day later Mr. Musk revealed what he had Bought a 9.2 percent stake At the social media company, a purchase made him its biggest partner. The news boosted Twitter’s shares by more than 20 percent on Monday.
Mr. Shares of Twitter rose nearly 8 percent on Tuesday after news of Muskin’s board appointment.
Mr. Musk is set to be appointed to a board seat that expires in 2024. Until he serves on the Twitter team, and if he chooses to resign after 90 days, he will not be allowed to hold above 14.9. Percentage of shares of Twitter.
“Through conversations with Elon in recent weeks, it is clear to us that he will bring great value to our team,” said Barak Agarwal, CEO of Twitter. Tweeted Tuesday.
On Twitter, Mr. Details of Muskin’s investment were dated March 14, the day he exceeded the 5 percent limit, which requires regulatory disclosure. He may have built up his shares long before that.
“We look forward to working with Barack & the Twitter team to make significant improvements on Twitter in the coming months,” Mr. Musk Tweeted in response Mr. To Agarwal.
Mr. Musk was quiet about his intentions to buy a large stake in Twitter, which was worth about $ 2.9 billion before it was released, but is now worth more. He registered with the Securities and Exchange Commission through a document 13G FiledIndicates that he plans to remain inactive and does not want to pursue a major stake in the company.
On Tuesday, Twitter announced that in addition to the deal to limit the size of its stake in the company, Mr. It said there were no “arrangements or understandings” between Musk and Twitter.
“Joining a team with passive monitoring capability is theoretically possible,” said Joshua Mits, professor of corporate law at Columbia Law School. But the presumption is that someone will join a group to effectively influence the company, he said. “Otherwise it does not mean you can not trust the SEC, but I think it will be an uphill battle,” Mr. Mitz said.
Mr. Musk has criticized Twitter in recent weeks for failing to adhere to free speech policies, and argued that users should be allowed to choose the algorithm that selects the tweets they view. Control posts on Twitter.
Jack Dorsey, co-founder of Twitter, won the idea while leading the company. “Any algorithm to use (or not) should be open to everyone,” he said Has tweeted that Last month Mr. Musk’s tweet emphasized open source algorithms.
Mr. Dorsey Went down He is the CEO of Twitter in November and plans to step down from the company’s board when his term ends next month. Mr. Dorsey was on Tuesday “Really happy”Mr. About joining the Musk group.
On Monday, after the release of his shares on Twitter, Mr. In one of his first tweets, Musk posted a Twitter poll asking users if they would like to edit tweets.
“Need the edit button?” Mr. Musk asked on the site. Mr. Agarwal responded to his tweet with an explicit note Previous poll Mr. Musk About freedom of speech: “The outcome of this referendum will be significant,” he said. Agarwal Wrote Monday. “Please vote carefully.”
As a director and key stakeholder, Mr. It is not clear to what extent Musk can be influential. When representatives of activist finance Elliott Management and private equity firm Silver Lake joined the group in 2020, They agreed to refrain from commenting on the policy.
Mr. When asked if Musk is expected to abide by similar rules, a Twitter spokesman said that although the panel plays a key advisory role, the day-to-day operations and decisions of the site will be carried out by Twitter management and staff.