A day after Tesla CEO Elon Musk disclosed a 9.2% stake in Twitter, the social media company has announced that it is appointing Musk to its board of directors. In a tweet, Twitter chief executive Parag Agrawal confirmed Musk’s new role on the 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,” Agrawal said.
Later, Musk replied saying he was looking forward to making significant improvements at Twitter.
As reported by The Verge, it emerged on Monday that Musk had become the largest shareholder in the company with the 9.2% stake, worth more than $3 billion and more than four times than that of Twitter co-founder Jack Dorsey.
According to a filing with the US Securities and Exchange Commission, the company will appoint Musk to Twitter’s board to serve as a Class II director with a term expiring at the company’s 2024 Annual Meeting of Stockholders.
It added that for so long as Tesla CEO is serving on the board and for 90 days thereafter, he 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.