What Happened
On Monday, it was revealed Tesla Inc. CEO Elon Musk owns a 9.2 percent stake in shares of Twitter Inc. The stake makes Musk the largest shareholder in the company.Why It’s Important
One of the items declared in the filing could influence what Musk does with his Twitter stake. Many had hoped Musk would accumulate additional shares and take a larger stake.Under the terms of the agreement, Musk can’t be a beneficial owner of more than 14.9 percent of Twitter shares while serving on the Board of Directors or 90 days after.
One of the first items conducted by Musk after it was announced he was the largest shareholder was polling Twitter users to see if they want an edit button, a long-requested feature. Over 73 percent of respondents have answered yes. Agrawal wrote on Twitter that the “consequences of this poll will be important.”
Twitter is expected to report quarterly earnings in April and will hold its annual meeting of shareholders on May 25. These events could offer more of an explanation to what Musk could have in store for the company.
“Looking forward to working with Parag & Twitter board to make significant improvements to Twitter in coming months!” Musk said in a reply tweet to Agrawal.