Musk Becomes Largest Twitter Shareholder, Joins Board to Participate in Management

[Image source=AP Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] Elon Musk, CEO of Tesla, who became the largest shareholder of Twitter, will participate in management as a member of Twitter's board of directors in the future.

The Wall Street Journal (WSJ) reported on the 5th (local time) that Twitter recently announced plans to appoint Musk, its largest shareholder, as a board member.

Parag Agrawal, CEO of Twitter, confirmed through Twitter, "Through conversations with Musk over the past few weeks, it has become clear that his joining the board will be a great benefit to the company." He also said, "Musk is a passionate supporter of Twitter but also has a critical perspective on user services," and that Musk's joining the board will help enhance Twitter's competitiveness.

In response, Musk also mentioned on Twitter, "I look forward to working with CEO Parag and the board members to make Twitter much better in the future." The board term is two years.

According to the U.S. Securities and Exchange Commission (SEC), Musk purchased 73,486,938 shares of Twitter last month, becoming the largest shareholder with a 9.2% stake. The value of the shares amounted to $2.89 billion (3.51 trillion KRW) based on the closing price on the 1st. Previously, the global investment company Vanguard, which held an 8.79% stake, was the largest shareholder.

The Twitter shares purchased by Musk are considered a "passive stake," meaning he does not actively participate in company management. However, considering his financial power, there had been speculation that he might engage in management through additional purchases at any time.

However, Twitter announced in a disclosure on the same day that as long as Musk is a board member, he is restricted from holding more than 14.9% of the company's shares.

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