After purchasing a considerable common stock of Twitter, Elon Musk is now appointed as one of the board of directors of the company.
This announcement comes from a filing with the SEC and was later confirmed by the Twitter CEO. As per it, Elon Musk is defined as a Class II director, whose term is until 2024’s shareholders’ meeting. Until then, Musk can involve in the critical decision-making sessions of Twitter, and input his suggestions.
Elon Musk on Twitter’s Director Chair
Not long ago, we’ve seen Elon Musk asking his Twitter community whether the platform is adhering to the free speech principles or not. And soon after that, he even expressed ideas of building his own social media platform that may justify the above belief.
And this week, we see him buying a significant part of Twitter! Elon Musk yesterday announced that he bought about 9.2% of Twitter’s common stock, making him the largest single shareholder of the company. And that’s more than 4x of what Jack Dorsey holds, Twitter’s former CEO and founder.
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.
— Parag Agrawal (@paraga) April 5, 2022
And now, he’s named as one of the company’s board of directors! As per a filing with the SEC, Musk will bear the position of a Class II director – whose term expires at the company’s 2024 annual shareholder meeting.
Appointed as a Class II Director means he’s limited to holding not more than 14.9 percent of common stock during his tenure, and also 90 days afterward. Well, this move sent up the share price of Twitter by 6% already, with the growth now standing over 25% in the last two days, caused due to Musk’s inclusion.
This growth is termed the best stock spike for Twitter since its IPO. Welcoming this news, Jack Dorsey responded that both Musk and Agarwal lead the company with their hearts.