It seems Elon Musk might be looking to get into the social media game.
On Monday, the Tesla founder secured a 9.2% passive stake in Twitter, making him the largest shareholder in the social media giant, as per CNBC.
On Tuesday, The Hollywood Reporter revealed that Musk agreed not to purchase more than 14.9% of Twitter’s stock in exchange for a seat on Twitter’s Board of Directors.
Elon Musk Will Be Named To Twitter’s Board Of Directors As ‘Promptly As Practicable’
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!
— Parag Agrawal (@paraga) April 5, 2022
On Tuesdays, the social media company said the SpaceX founder will be named to their Board of Directors as “promptly as practicable” in a new securities filing. The agreement also states that “for so long as Mr. Musk is serving on the Board and for 90 days thereafter, Mr. Musk will not, either alone or as a member of a group, become the beneficial owner of more than 14.9 percent of Company’s common stock outstanding.” His term is set to expire in 2024.
Twitter CEO Parag Agrawal tweeted, “I’m excited to share that we’re appointing [Musk] to our board! 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!”
Musk added that he was “looking forward to working with Parag & Twitter board to make significant improvements to Twitter in coming months!”
Looking forward to working with Parag & Twitter board to make significant improvements to Twitter in coming months!
— Elon Musk (@elonmusk) April 5, 2022
Former chief Jack Dorsey praised Musk’s appointment, tweeting that Musk “cares deeply about our world and Twitter’s role in it.” He added that, “Parag and Elon both lead with their hearts, and they will be an incredible team.”
I’m really happy Elon is joining the Twitter board! He cares deeply about our world and Twitter’s role in it.
Parag and Elon both lead with their hearts, and they will be an incredible team. https://t.co/T4rWEJFAes
— jack⚡️ (@jack) April 5, 2022
This news comes less than a month after Musk revealed that he was stepping down from Endeavor’s Board of Directors after one year.
Endeavor Board Claims Elon Musk’s Resignation Is ‘Not The Result Of Any Disagreement’
In late March, the Endeavor Board of Directors announced that there were no disagreements that led Elon Musk to leave the company. As The Blast previously reported, the SpaceX founder had first joined the board of directors of Endeavor Group Holdings in March 2021. He is expected to step down on June 30, 2022.
“The board of directors approved reducing its size from eight to seven members subject to and effective upon the effectiveness of Mr. Musk’s resignation,” the filing said, claiming Musk’s decision to leave “was not the result of any disagreement with the Company on any matter relating to its operations, policies or practices.”
Musk originally made his fortune as the co-founder of PayPal before his success in the electric car market turned him into one of the richest and most influential people on the planet. A source familiar with the situation told Deadline that Musk decided to leave the Endeavor Board of Directors in order to focus on other projects. At that time, his potential interest in Twitter was not disclosed.
In March 2021, Endeavor had added him to the board due to his “professional background and experience running a public company, his previously held senior executive-level positions, his service on other public company boards and his experience starting, growing and integrating businesses.”
A company spokesperson thanked Musk “for his commitment to Endeavor through our first year as a public company, in which he contributed meaningfully to our long-term strategy and vision for the future of sports and entertainment.”
“We know he has a lot of demands and little time, and we appreciate the support he provided us,” they added.
The remaining Endeavor board members include the company’s CEO, Ariel Emanuel; its executive chairman, Patrick Whitesell; and Egon Durban, Ursula Burns, Jacqueline Reses, Stephen Evans and Fawn Weaver. Durban serves as the chairman of the board.