South African billionaire Elon Musk has bought a 9.2 per cent stake in Twitter, making him its largest shareholder. Musk recently criticized Twitter in a series of tweets, questioning the company’s commitment to free speech and whether a new social media platform was needed.
Twitter is now appointing Elon Musk to its board of directors until 2024.
“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,” the filing says. “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.”