Elon Musk to Join Twitter Board After Becoming Largest Shareholder

Tesla and SpaceX CEO Elon Musk can be becoming a member of the board of administrators at Twitter. The appointment comes after the billionaire took a 9.2 % stake within the social media firm, which makes him the corporate’s largest shareholder.

“I’m excited to share that we’re appointing @elonmusk to our board!” introduced Twitter CEO Parag Agrawal on Tuesday. “Through conversations with Elon in recent weeks, it became clear to us that he would bring great value to our 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. Welcome Elon!” Agrawal added in a follow-up tweet.

Twitter CEO Parag Agrawal

Twitter CEO Parag Agrawal (Google Cloud/YouTube)

Tesla CEO Elon Musk unveils the new Tesla factory in Fremont, Calif., Wednesday, Oct. 27, 2010. The new Tesla factory is the former NUMMI plant. (AP Photo/Paul Sakuma)

Tesla CEO Elon Musk unveils the brand new Tesla manufacturing facility in Fremont, Calif., Wednesday, Oct. 27, 2010. The new Tesla manufacturing facility is the previous NUMMI plant. (AP Photo/Paul Sakuma)

The Tesla CEO will function a “Class II” director with a time period that expires at its 2024 annual assembly. Moreover, the corporate says that Musk won’t personal or management greater than 14.9 % of Twitter shares, in response to a report by the Telegraph.

But the billionaire’s Twitter stake doesn’t rule out full buyout, some Wall Street analysts say, studies Fox Business.

While Musk’s stake in Twitter firm is taken into account passive, there are analysts who consider he has extra deliberate for the social media firm’s long-term technique. CFRA Research senior fairness analyst Angelo Zino says {that a} potential all-out buyout of the corporate may nonetheless be on the desk.

Last month, Musk bought 73,486,938 shares of Twitter’s frequent inventory, doubtless paying round $33 a share or $2.4 billion. As of Friday, the shares had been as much as about $39, a return of round 18 %.

Following the disclosure in a regulatory submitting, shares jumped one other 27 % to $49.97. Musk’s shares at the moment are up 50 % from when he acquired them.

You can comply with Alana Mastrangelo on Facebook and Twitter at @ARmastrangelo, and on Instagram.

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