Elon Musk is set to join Twitter’s board of directors a day after he acquired a 9.2% stake in the social media company.
“Through conversations with Elon in recent weeks, it became clear to us that he would bring great value to our board,” CEO Parag Agrawal stated in a tweet on Tuesday.
“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 added.
The move was welcomed by former Twitter CEO Jack Dorsey, who stated that Musk “cares deeply about our world and Twitter’s role in it.”
In response to Agrawal’s announcement, Musk replied that he was “Looking forward to working with Parag & Twitter board to make significant improvements to Twitter in coming months!”
According to CNBC, Musk’s term on the board of directors is set to expire in 2024, per a filing with the SEC. For his entire board term, or 90 days after, Musk cannot be the beneficial owner of more than 14.9% of the company’s common stock.
Musk’s purchase of Twitter stock comes a week after he criticized the social media platform for failing to uphold free speech. Musk, a self-described “free speech absolutist,” said he was considering building a new social media platform, at which point he was urged by numerous Twitter users to take over the platform instead.
While Musk now presently owns the largest stock among outside shareholders, it remains a passive interest, which often means that the holder isn’t trying to exert control or influence over the company. However, Musk is expected to take an aggressive stance on his stake in Twitter.
As detailed by Rebel News, tech analyst Dan Ives said on Monday that Musk’s purchase is “just the appetizer,” and that he expects to see Musk take further moves in determining the direction of the social media platform.
“Musk could try to take a more aggressive stance here, on Twitter,” Ives said on CNBC’s Squawk Box. “This eventually could lead to some sort of buyout.”
“It’s no surprise that he wanted to do something on social media, and this is really him not just talking to the talk, but walking the walk,” he added, referring to Musk’s prior remarks.