Connect with us

Tech

Elon Musk, CEO of Tesla, will join Twitter’s board of directors after purchasing a 9.2 percent stake in the company

After being appointed to the board, Musk teased significant changes in the product

Published

on

Elon Musk Twee after appointed as Twitter's Board member

Elon Musk, CEO of Tesla, will join Twitter’s board of directors after purchasing a 9.2 percent stake in the microblogging site. Twitter’s shares jumped more than 2% as a result of the announcement on Tuesday.

Musk’s holding, which is considered a passive interest, is the greatest among outside owners and implies that the holder isn’t attempting to control or influence the firm. Nonetheless, some investors anticipated Musk to adopt a more aggressive approach. Investors increased their holdings of the stock by 27% after learning of the investment on Monday, propelling it to its best day since the IPO.

Twitter’s CEO, Parag Agrawal, said in a tweet, “Through conversations with Elon in recent weeks, it became clear to us that he would bring great value to our Board.”

CEO Agrawal added, “He’s both a passionate believer and an 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.”

Musk’s purchase follows a wave of criticism directed at the social media firm. Last month, the outspoken Tesla CEO questioned individuals on Twitter about whether the company adhered to free speech standards. He then stated that he was thinking about creating a new social media site.

After being appointed to the board, Musk on Tuesday indicated that he would push for significant changes in the product (which in this case is the microblogging site itself). In a tweet, Musk said, “Looking forward to working with Parag & Twitter board to make significant improvements to Twitter in coming months!”

Former CEO Jack Dorsey applauded the move, writing on Twitter that Musk “cares deeply about our world and Twitter’s role in it.”

Hours after his stake in the firm was exposed, Musk resorted to Twitter to poll followers on their interest in an edit button. Agrawal reposted the message, asking people to “vote carefully” since the outcomes “will be important.”

According to an SEC filing, Musk’s term is due to expire in 2024. Furthermore, Musk cannot possess more than 14.9% of the company’s common stock outstanding for the duration of his board term or 90 days afterwards.

Musk’s investment comes at a critical juncture in the social media company’s history. Parag Agrawal, who took over as CEO in November, stated that he plans to focus on analytics and accelerate Twitter’s efforts to offer new products to customers. He’s also holding mountains to meet the company’s lofty internal targets, such as increasing Twitter’s monetisable daily active user base to 315 million by 2023’s end. In the most recent quarter, Twitter claimed 217 million monetisable daily active users.

Wedbush analyst Dan Ives, in a note to investors, said, “We anticipate Musk’s joining Twitter will result in a slew of strategic initiatives, including a variety of near-term and long-term options right out of the gate for the firm that is currently battling in a social media arms race.” He added, “It’s time to get out the popcorn and watch the happenings over the next few months with Musk on the Board.”

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published.