On April 4, according to the U.S. Securities and Exchange Commission (SEC) disclosure documents, Tesla CEO Elon Musk already owns 73486938 twitter common stock, accounting for 9.2% of Twitter's common stock, calculated based on Twitter's closing price on Friday.The shares are worth $2.89 billion, and Musk replaced Pioneer as Twitter's single largest shareholder.
And on April 5, according to a filing with the SEC, Twitter will appoint Tesla CEO Elon Musk as a member of its board of directors. Musk will serve as a Category II director until 2024, a position that could serve as a counter-takeover measure.
"The Company will appoint Mr. Musk as a member of the Company's Board of Directors as a Class II Director for a term expiring at the Company's 2024 Annual General Meeting. "
The document said, "As long as Mr. Musk serves on the Board, Mr. Musk will not be alone or as a member of a group for the next 90 days,Become the actual owner of more than 14.9% of the Company's issued common stock, including the economic risk of trading through derivative securities, swaps or hedging for these purposes. "
Musk said he looked forward to working with Parag and Twitter's board to make significant improvements to Twitter in the coming months.
It is worth mentioning that a few days ago, Musk launched an investigation on Twitter, asking its fans "whether they need an edit button", which may also be in line with Musk's claim that it will make major improvements to Twitter.
In addition, according to Cathy Wood, founder of Ark Investment Management,Musk's stake in Twitter could reshuffle the company's management.
And Cathy Wood said in an interview that Musk had sent a "strong signal" to Twitter's current CEO, Parag Agrawal.
It is reported that the previous CEO Dorsey is a good friend that Musk admires. In 2020, Musk also publicly supported Dorsey. At that time, because Twitter's stock price and performance continued to be sluggish, institutional investors were dissatisfied with Dorse as the CEO of both Twitter and Square listed companies, and continued to pressure Dorse to resign and let Twitter go.
In December, Dorsey finally resigned as Twitter's CEO and announced his retirement from the board, completely fading out of Twitter operations and focusing on Square's CEO role. Twitter's former CTO Agarwal took over as CEO.
But Musk seems very unhappy with the new Indian-born CEO. He publicly mocked the new CEO on Twitter, even using old historical photos of Stalin and Yezov, P put on the heads of Agaval and Doshi, and alluded to Twitter's drive away Dorsey.
At this time, Musk suddenly took over the position of Twitter's largest shareholder, and did not rule out the attempt to interfere with the management by increasing the influence on Twitter's board.Now, Musk has become a member of the board, indicating that Musk may have completed the first step of the plan.