The move comes a day after the billionaire revealed he'd become the company's largest shareholder.
“This was a friendly move by the Twitter board to embrace Musk with open arms,” says Wedbush analyst Dan Ives. “We believe Musk joining Twitter will lead to a host of strategic initiatives which could include a range of near-term and long-term possibilities out of the gates for the company. Now it’s time to get out the popcorn and watch the developments over the coming months with Musk on the board.
Dorsey also voiced support for Musk’s new role on Twitter’s board on Tuesday. “Parag and Elon both lead with their hearts,” Dorsey tweeted, “and they will be an incredible team.” Twitter fended off one of these types of investors in 2020, and it used a similar playbook to the one it has deployed now with Musk. In March 2020, Elliott Management took a stake in Twitter, and the activist-investor firm swiftly unveiled a list of striking demands, including one advocating for Dorsey’s departure. Twitter reached a deal with Elliott in less than a month, giving it a board seat.
Investors have liked what they’ve seen so far. Twitter stock rose nearly 30% on Monday and climbed another 6.5% in pre-market trading on Tuesday. The skyrocketing shares have pushed Musk’s fortune past $300 billion—further padding his position as the world’s richest person—and added tens of millions to the net worths of Dorsey and another departed Twitter cofounder Ev Williams.
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