Elon Musk secured a seat on Twitter’s board of directors a day after it became known that he became the company’s largest shareholder and is proposing substantial changes, including an edit button on tweets.
On Monday, during a regulatory filing, it was revealed that Tesla’s CEO acquired 73.5 million shares of the company, equivalent to 9.3% of the total and with an estimated value of 3 billion dollars, according to CNBC.
The businessman, considered the world’s richest man, had been launching criticism about the company’s principles after conducting a poll last month among his more than 80 million Twitter followers on whether the social network respected freedom of speech. A 70% refusal encouraged him to announce that he planned to create his own platform.
Musk now becomes the 12th member of the company’s board of directors until Jack Dorsey, who stepped down as CEO last year, leaves next month.
It also transpired that although the tycoon will seek to increase his stake in the company, he will not be allowed to own more than 14.9% of the outstanding shares while he is a board member.
″Looking forward to working with Parag & Twitter board to make significant improvements to Twitter in coming months!” Musk tweeted on Tuesday.
Looking forward to working with Parag & Twitter board to make significant improvements to Twitter in coming months!— Elon Musk (@elonmusk) April 5, 2022
Meanwhile, CEO Parag Agrawal reported Tuesday in a regulatory filing that he signed an agreement with Musk to grant the billionaire a seat on its board of directors, with the term expiring at its 2024 annual shareholder meeting.
He further wrote on the social network itself, “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.”
Musk holds a “passive” stake (which corresponds to those who own less than 10% of the shares) and will be involved in strategic decisions, including the direction of Twitter’s Bluesky project and the addition of an edit button, Reuters quoted a source familiar with the matter as saying.
With the “edit button,” users will be able to change their tweets after posting them. On Monday, Musk took another poll asking his followers about this possible feature, with more than 73% of respondents saying they would use the button.
Agrawal responded to the poll in a tweet, saying, “The consequences of this poll will be important. Please vote carefully.”
Twitter shares have risen more than 25% since the news of Musk’s new acquisition broke.