Elon Musk to join Twitter board of directors: Everything we know

Elon Musk revealed this week that he had purchased a sizable chunk of Twitter shares, becoming the company’s largest shareholder one week after hinting that he planned to shake up the social-media industry.

The Tesla chief executive is a frequent user, as well as a longtime critic, of the platform, which he has previously accused of stifling free speech.

The disclosure of his stake on Monday came shortly after he teased the possibility on Twitter of creating a new social media platform, telling his more than 80 million followers that he was “giving serious thought” to the idea without revealing his stake in Twitter.

ELON MUSK PURCHASES STAKE IN TWITTER AFTER SLAMMING ITS APPROACH TO ‘FREE SPEECH’

In an accompanying poll, Musk asked his Twitter followers whether they believe “rigorously adheres” to the principle of free speech. “The consequences of this poll will be important,” he added. “Please vote carefully.”

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Tesla CEO Elon Musk tours the plant of the future foundry of the Tesla Gigafactory on Aug. 13, 2021, in Grünheide near Berlin, Germany. (Patrick Pleul – Pool/Getty Images / Getty Images)

Since then, Twitter CEO Parag Agrawal announced that Musk will be joining the company’s board of directors, following several weeks of conversation. Musk tweeted that he hopes to make “significant improvements” to Twitter in the coming months with the new role.

Here is everything that we know about the matter so far:

How many shares does Musk own?

Musk disclosed on Monday that he had acquired a 9.2% stake in Twitter in an SEC form that investors are required to file when they own more than 5% of a company. The filing, dated March 14, revealed that Musk bought about 73.5 million shares for roughly $2.9 billion. Those shares are now worth roughly $3.7 billion.

Is Musk now the majority shareholder of Twitter?

No. Although Musk is the company’s largest shareholder, he does not own a majority of shares – which would mean that he owns and controls at least 50% of Twitter stock.

Still, the significance of a 9.2% stake should not be overlooked.

“It looks like Elon has his eyes laser set on Twitter,” Wedbush analyst Dan Ives said in a research note. He said the state could ultimately lead to a “more aggressive ownership role.”

Who are the other top shareholders?

Musk’s stake elbowed Vanguard Group from the top shareholder spot to No. 2, according to data from FactSet. Vanguard Group has an 8.4% stake in the company.

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In this photo illustration the logo of Twitter can be seen on a smartphone on March 10, 2022, in Berlin, Germany. (Thomas Trutschel/Photothek via Getty Images/Getty Images)

Morgan Stanley Investment Management, meanwhile, fell to No. 3, with holdings of 8.1%.

Twitter founder and former CEO Jack Dorsey is the only other individual shareholder in the top 10. At No. 7, he holds a 2.25% stake in the company, a position that is almost $200 million more valuable after Musk revealed his purchase.

What does his purchase mean for Twitter?

Agrawal on Tuesday announced that Musk would join the company’s 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,” Agrawal tweeted.

Musk responded that he was “looking forward to working with Parag & Twitter board to make significant improvements to Twitter in coming months!”

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Since then, Musk asked his followers on Twitter to vote on whether to company should add the ability for users to edit tweets after posting them. More than 73% of 4.4 million respondents voted “yes.”

The following day, the company said that it had been working on that feature since last year. It added, “no we didn’t get the idea from a poll.”

How long will Musk be on the board of directors?

Musk’s two-year board term expires in 2024. During his board term, Musk’s stake in the company cannot exceed 14.9%, according to a securities filing from Twitter.

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