Twitter has an ace up its sleeve to prevent Elon Musk from getting even more power in the company

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It has been Elon Musk arriving on Twitter and starting to change things. After the announcement that the tycoon would become the largest shareholder of the social network, it was later announced that Elon Musk was also going to join the board of directors of Twitterto advise the new CEO, Parag Agrawal.

“He is both a passionate believer and an intense critic of the service,” Agrawal defines Musk. The figure of Elon Musk does not go unnoticed, for better or for worse. Overnight, Twitter has seen how a person with as much power as Musk has become the largest shareholder. And unlike other investors, it seems that Elon Musk will have a very active role. But Twitter has an ace up its sleeve to limit Elon Musk’s power within the company.

Musk wasn't kidding.  Twitter is working on a button to edit tweets

The 14.9% clause

Elon Musk will enter the board of directors of Twitter, but with a series of requirements. As described in the SEC statementElon Musk’s membership on the Board of Directors is limited to the fact that he does not acquire as many shares of the company.

While Musk is on the board and for 90 days afterward, Musk may not (either himself or as a member of a group) own more than 14.9% of the company’s sharesincluding derivatives and other transactions.

Beyond this clause, the company has not added any more limitations. Elon Musk will be able to participate as Class II director and the same benefits will be applied as to the rest of board members. Among the participants of this meeting are Bret Taylor, Co-CEO of Salesforce, Jack Dorsey, co-founder of Twitter, Parag Agrawal, current CEO of Twitter, Patrick Pichette, ex-CFO of Google or Dr. Fei-Fei Li, professor at Stanford.

As Agrawal has described, Elon Musk has been talking to him for weeks. It has recently been announced that the requested edit button will be implemented, although they confirm that they had been working on it for more than a year. We will have to wait to see what role Elon Musk has in the coming months. What does seem clear is that Twitter has chosen to establish a limit to the power that Elon Musk can have on the platform. A level of action that may be unnecessary for Musk to force through changes he deems appropriate for your new company.

In Xataka | Elon Musk’s mathematical puzzle to enter his companies to work

It has been Elon Musk arriving on Twitter and starting to change things. After the announcement that the tycoon would…

It has been Elon Musk arriving on Twitter and starting to change things. After the announcement that the tycoon would…

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