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HomeUncategorizedTwitter to name top shareholder Elon Musk to board

Twitter to name top shareholder Elon Musk to board

Twitter will name Tesla’s top boss Elon Musk to its board, it said a day after he announced the acquisition of a 9.2 percent stake in the social media company, making him its biggest shareholder.

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As a director, Musk will not be able to buy more than 14.9 percent of Twitter’s common stock as an individual or a member of a group, the company said in a filing, Reuters reported.

“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. He’s both a passionate believer and intense critic of the service which is exactly what we need on @Twitter, and in the boardroom, to make us stronger in the long-term. Welcome, Elon!,” Twitter CEO Parag Agarwal tweeted.

To this Musk replied, “Looking forward to working with Parag & Twitter board to make significant improvements to Twitter in coming months!”

On Monday, Musk has disclosed 73.5 million Twitter shares which are held by the Elon Musk Revocable Trust, of which he is the sole trustee.

Musk will participate in the director benefits arrangements applicable to non-employee directors, the company said, adding that Twitter will enter into its standard form of indemnification agreement with Musk, a Reuters report said.

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According to Bloomberg, Twitter shares surged as much as 27% after Musk’s purchase was revealed Monday in a regulatory filing. The gain marked the stock’s biggest intraday increase since its first day of trading following the company’s 2013 initial public offering. The stake is worth about $2.89 billion, based on Friday’s market close.

Musk will serve as a Class II director, with the term expiring at Twitter’s 2024 annual meeting of stockholders, it added.

India Blooms News Service

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