San Francisco: Twitter Inc. named Elon Musk to its board a day after it was publicly disclosed that the chief executive officer of Tesla Inc. had amassed a 9.2% stake in the social-media company.
According to a filing with the Securities and Exchange Commission on Tuesday, Musk will not own more than 14.9% of Twitter during his time on the board and up to 90 days thereafter. Musk’s term on the board is set to expire at Twitter’s 2024 annual meeting. Twitter’s shares jumped 8% in early trading in New York.
Musk purchased his Twitter stake in mid-March, making him the company’s biggest shareholder. He has also been one of the biggest personalities on Twitter and has regularly run into trouble on the platform. Musk is currently seeking to exit a 2018 deal with the SEC that put controls in place related to his tweeting about Tesla.
Twitter CEO Parag Agrawal said in a tweet that he’s “excited” about appointing Musk to the 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.”–Bloomberg
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