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Elon Musk will be part of the board of directors of Twitter

Elon Musk, CEO of Tesla, is the next class II director of Twitter until 2024, that is, will be part of the board of directors of the social networkaccording to a document reviewed by TheVerge which was filed with the United States Securities and Exchange Commission.

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Likewise, Parag Agrawal, CEO of Twitter, confirmed the news through his account in a short thread.

“I am excited to share that we are appointing @Elon Musk to our board! Through conversations with Elon over the past few weeks, it became clear to us that he would bring tremendous value to our Board,” Agrawal noted.

“He is both a passionate believer and an intense critic of the service, which is exactly what we need on @Twitter, and in the boardroom, to make us stronger for the long haul. Welcome Elon!” he added.

The visionary of Tesla and Space X would be preparing to close ranks with the board of directors of the social network, which, at the same time, limits to get a larger percentage of the companybecause according to the document obtained by the aforementioned means, no member of the group can become a beneficial owner for more than 14.9 percent.

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“While Mr. Musk is a member of the Board and for 90 days thereafter, Mr. Musk will not become, either alone or as a member of a group, the beneficial owner of more than 14.9% of the Company’s common stock outstanding at that time, including for these purposes the economic exposure through derivative securities, swaps or hedging operations.”

This occurs after last Monday, Musk announced that he had acquired 9.2% of the shares of the social network, causing the stock market to skyrocket. Also on his Twitter account he indicated that he would be working with Parag Agrawal to make “significant improvements on Twitter in the following months”.

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For its part, jack dorsey, a former Twitter CEO, said he’s happy Musk is joining the company’s board. “I’m really happy that 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 will make an amazing team.”

According to CNBC, Musk’s purchase could trigger problems with the SEC (Securities Exchange Commission, for its acronym in English in the United States). The first complication occurred after Elon Musk did not heed the rule that anyone with more than 5% stake in the company must make it public within the first 10 days. The acquisition was on March 14 and the announcement was made for the first time on April 4, that is, 21 days later. For that action he would be subject to a fine of 100 thousand dollars.

Musk bought nearly 73.5 million shares of common stock in Twitter, with which he became largest shareholder of the groupahead of the Vanguard investment fund (8.8%) and the Morgan Stanley bank (8.4%), according to data from Bloomberg.

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At that time, analysts Daniel Ives and John Katsingris, from Wednesday, predicted that the purchase could be the beginning of broad talks with the management of the social network, which could lead to an active purchase and a position “potentially more aggressive in the ownership of Twitter”.

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