Elon Musk appointed to Twitter’s board of directors as Twitter users asked Musk to restore “freedom of speech” on the platform

Quick Take

Tesla CEO Elon Musk will join Twitter’s board of directors after taking a 9.2% stake in the social media company, according to a release filed with the Securities and Exchange Commission (SEC).

“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.”

According to the filing, Musk will serve as a Class II director on the board, with his term expiring in 2024. 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 outstanding.

“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.”

Meanwhile, in a tweet on Monday, Twitter CEO Parag Agrawal said: “Through conversations with Elon in recent weeks, it became clear to us that he would bring great value to our Board.” Agrawal added, “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.”

In another post this morning, Agrawal tweeted:

“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.”

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.

— Parag Agrawal (@paraga) April 5, 2022

Immediately after the announcement yesterday, conservatives asked Elon Musk to restore former President Donald Trump’s Twitter account. In a tweet, Lauren Boebert said:

“Now that @ElonMusk is Twitter’s largest shareholder, it’s time to lift the political censorship. Oh… and BRING BACK TRUMP!”

Now that @ElonMusk is Twitter’s largest shareholder, it’s time to lift the political censorship.

Oh… and BRING BACK TRUMP!

— Lauren Boebert (@laurenboebert) April 4, 2022

The purchase comes less than two weeks after Musk criticized Twitter, polling people on Twitter about whether it adheres to free speech principles. “Given that Twitter serves as the de facto public town square, failing to adhere to free speech principles fundamentally undermines democracy,” Musk tweeted. “What should be done?”

So far, Musk has made over $750 million from his $2.89 investment, which is approximately twice Twitter’s net income for the last 3 years.