November 22, 2024

Twitter Appoints Elon Musk to Board of Directors in Deal to Limit Ownership

Posted April 5, 2022 at 11:21pm by iClarified · 4550 views
Twitter has appointed Tesla CEO Elon Musk to its Board of Directors in a deal that limits his ownership of the company to 14.9% while serving as a director.

Musk sent Twitter's stock skyrocketing yesterday when it was discovered that he had acquired a 9.2% ownership stake in the company.

Today, Twitter CEO Parag Agrawal announced Musk was joining the board.

"I’m excited to share that we’re appointing @elonmusk to our board! Through conversations with Elon in recent weeks, it became clear to us that he would bring great value to our Board", said Agrawal. "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!"

A new 8-K SEC filing reveals that Musk has agreed to limit his ownership of Twitter while on the Board and for 90 days after.

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On April 4, 2022, Twitter, Inc. (the “Company”) entered into a letter agreement (the “Agreement”) with Elon Musk, which provides that:

● The Company will appoint Mr. Musk to the Company’s Board of Directors (the “Board”) to serve as a Class II director with a term expiring at the Company’s 2024 Annual Meeting of Stockholders.

● 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% of the Company’s common stock outstanding at such time, including for these purposes economic exposure through derivative securities, swaps, or hedging transactions.
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Musk is widely expected to push Twitter towards adhering to free-speech principles, something he strongly believes in.

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