Twitter Inc (TWTR.N) said it will offer Elon Musk a seat on its board of directors, a position the Tesla boss and entrepreneur plans to use to bring about significant improvements at the social media site after disclosing a sizeable holding.
Musk reported in a regulatory filing on Monday that he had amassed a roughly 9% stake in Twitter, making him its largest shareholder.
“Looking forward to working with Parag & Twitter board to make significant improvements to Twitter in coming months,” Musk tweeted. Parag Agrawal is Twitter’s CEO.
Beyond the promise of big change at Twitter, Tesla Inc’s (TSLA.O) CEO, who often chooses unconventional paths, has provided little detail.
Musk will be involved in strategic decisions, including the direction of Twitter’s Bluesky project and the addition of an edit button, according to a source familiar with the situation.
He will not have a say on the platform’s moderation, what speech gets banned or whose accounts get restored, the source said – a policy that applies to all board members.
Twitter shares closed up 2%, at $50.98, on Tuesday, after gaining over 27% on Monday. Tesla shares were down 4.7%.
Musk’s appointment will potentially block chances of his making a takeover bid because Musk, whom Forbes ranks as the world’s wealthiest person, cannot own more than 14.9% of Twitter’s stock either as an individual shareholder or as a member of a group as long as he is on the company’s board.
The disclosure of his stake on Monday stoked widespread speculation, ranging from a full takeover of the platform to taking an active position.
Musk has not indicated an interest in acquiring the company, the source said.
Musk on Tuesday made an amendment to the securities filing to report a change in his status from a passive investor to an active one, amid controversy that he may have filed a wrong paperwork.
“Not one to shy away from controversy or speaking his mind, Musk always carries some compliance risks,” said Andrew Wang, managing partner at Runnymede Capital Management.
Musk also disclosed in his filing on Tuesday that he bought the combined 73 million shares in Twitter for $2.64 billion from Jan. 31 to April 1. That works out to an average price per share of $36.14.
Twitter shares had closed at $39.31 on Friday, ahead of Musk’s disclosure of his stake.
