Twitter announced this morning via a tweet and a filing with the U.S. Securities and Exchange Commission that Elon Musk, best known for his work at PayPal, SpaceX, and Tesla, is joining the social network’s board of directors.
On April 4, the richest man in the world, Elon Musk, purchased 9.2% of Twitter’s shares, enough to make him the company’s top shareholder. Twitter then appointed Musk to its board of directors.
The company appointed Musk to the board as a Class II director with a term expiring at the company’s 2024 annual shareholder meeting.
Musk, either alone or as a member of a group, will not be able to become a beneficial owner of more than 14.9% of Twitter (ticker: TWTR) stock for as long as he sits on the board and 90 days after, according to the filing. This includes economic exposure through derivative securities, swaps, or hedging transactions, the filing added.
Twitter’s stock jumped 4% on Tuesday following the board announcement. On Monday, it had its best day since the company’s IPO in 2013, skyrocketing by more than 27%. But when it comes to Musk, markets are rarely rational.
Whatever the financial impact may or may not be, one thing is clear: Seemingly overnight, Musk has been granted greater sway over a company that he’s routinely criticized and that he uses to tweet to some 80 million followers, including many dedicated members of the cult of Elon.
Twitter CEO Parag Agrawal and co-founder Jack Dorsey both welcomed Musk to the company’s 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 tweeted. “Welcome Elon!”
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.
The spokesperson added the company’s board plays an important part in providing guidance and feedback “across the entirety of our service”. But day-to-day operations and decisions are made by Twitter brass and employees.
It’s also unclear how to present Musk will be on the board. In addition to leading Tesla, Musk is also CEO of rocket company SpaceX and Neuralink, a company that aims to develop implantable brain chips.