Twitter To Name Top Shareholder Musk To Board

Tesla boss Elon Musk vowed on Tuesday there would be "significant improvements” at Twitter, after the micro-blogging site announced plans to name him to its board.

The appointment will potentially block any chances of a takeover bid from Musk, however, as he cannot own more than 14.9 percent of the company’s stock as long as he is on the board.

Musk's disclosure of a 9.2 percent stake in Twitter on Monday stoked widespread speculation about his intentions as the company's biggest shareholder.

"I'm excited to share that we're appointing @elonmusk to our board," Twitter CEO Parag Agrawal said in a tweet. "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 response, Musk tweeted: "Looking forward to working with Parag & Twitter board to make significant improvements to Twitter in coming months."

Musk did not provide any details of his plans for the company, which is struggling to boost active users on its platform, even as it pursues new projects to end long-running stagnation.

Musk calls himself a free-speech absolutist and has long been critical of the social media platform and its policies. He recently ran a Twitter poll asking users if they believed the platform adheres to the principle of free speech.

After disclosing his stake on Monday, he put out another poll on Twitter asking users if they want an edit button, a long-awaited feature on which the social media platform has been working.

"News that he is taking a board position will lead to expectations that he wants, and will have, greater involvement in decision-making at the social network," said Susannah Streeter, senior an analyst, Hargreaves Lansdown

"This may lead to some nervousness about Mr Musk getting too much influence about the way Twitter is run, with a view to bolstering his own personal brand and that of his companies."

Twitter shares surged 4 percent in early trading, after closing up over 27 percent on Monday. (Reuters)