Tesla and Space X CEO Elon Musk has become Twitter’s largest shareholder after acquiring 9.2 per cent of its shares.
It was disclosed that he had become the company’s largest individual shareholder with 73,486,938 shares in the media platform as of March 14.
The deal
In a regulatory filing on Tuesday, Twitter said that it plans to appoint Must to its board for a term that ends in 2024.
“I’m excited to share that we’re appointing @elonmusk to our board,” said Twitter CEO Parag Agrawal in a tweet on Tuesday.
“Through conversations with Elon in recent weeks, it became clear to us that he would bring great value to our Board,” he added.
In response, Musk tweeted he is “looking forward to working with Parag and Twitter board to make significant improvements to Twitter in coming months.
As part of the deal, Musk has agreed not to acquire more than 14.9 per cent of the company’s shares while he remains on the board.
His stake at twitter now stands at 2.89 billion dollars with speculations that he could convert it into his social media app in future.
What pushed Musk?
Before purchasing the stake, he conducted a poll criticizing the platform and went ahead to ask his followers if twitter adheres to free speech and whether a new platform is needed.
He further cited his interests in starting his own platform.
Elon’s announcement made twitter stock rise up to 27 per cent and adding up close to a billion dollars into his net worth.
The billionaire who is active on twitter having 80 million following says he wants to make some changes on the app, among them the freedom of speech.