Twitter’s agreement with Elliott calls for the appointment of two new members to what was an eight-person board, with a promise to search for a new, third independent director, the company said. Activist investor Elliott Management is seeking to oust Twitter CEO Jack Dorsey, Bloomberg News reported late Friday. Here’s the deal: Elliott Management, an “activist investor” firm, has bought a lot of Twitter shares and wants to replace Twitter CEO Jack Dorsey. Twitter also entered into a Cooperation Agreement with Elliott Management Corporation ("Elliott"), an investment firm whose affiliated funds own approximately 4% … It was reported that those moves were motivations for Singer’s desire to push Dorsey out. But it’s not enough for Elliott to agitate for change without making clear what Twitter should look like under new management. Jack Dorsey, CEO of Twitter, and Elliott Management are getting ready to mix it up. Twitter shares are spiking following reports that Elliott Management has taken a large stake in the social media company. Dorsey is the only person to lead two public companies with market valuations greater than $5 billion as CEO. A Division of NBCUniversal. Other stakeholders have voiced concern about Dorsey’s leadership and Twitter has seen its share price struggle, although it recently reported quarterly revenue above $1bn for the first time. The deal gives both Silver Lake and Elliott a seat on Twitter's board and includes funding for a $2 billion share repurchase program. It … Elliott Management has nominated four directors to the board at Twitter, setting the stage for a potential showdown between the activist hedge fund and social media firm. The deal comes after Elliott’s attempt to … Activist investor Elliott Management has acquired nearly a 5% stake in Twitter, and believes the key to unlocking value is to replace Jack Dorsey as CEO. New York-based hedge fund Elliott Management and affiliated funds own about 4% of Twitter stock. Twitter also said that beyond 2020, it plans to "accelerate revenue growth on a year-over-year basis and gain share in the digital advertising market. Bloomberg first reported the news, which Axios has since confirmed with multiple sources. Billionaire Paul Singer’s Elliott Management has taken a ‘sizable stake’ and intends to ‘push for changes’, reports Bloomberg News, Last modified on Sat 29 Feb 2020 15.11 EST. Trump famously communicates with the public largely through Twitter, at the expense of traditional media strategy. After a White House visit in February 2017, Trump said Singer “was very much involved with the anti-Trump or, as they say, ‘Never Trump’, and Paul just left, and he’s given us his total support and it’s all about unification”. Jack Dorsey on Capitol Hill in Washington DC, on 5 September 2018. the billionaire founder of Elliott Management, to live and work in Africa for part of each year. As a result, the company will fund a $2 billion share repurchase program, according to the announcement.Â. Its use and potential manipulation by politicians of all stripes, from Trump to Democratic candidate Mike Bloomberg, remains a source of fierce contention. Facebook and YouTube need to be more aggressive about false information: Fmr. Bloomberg News first reported that Elliott Management … Elliott’s massive size means financial industry assets in Florida will increase by half, according to the research firm Prequin. Paul Singer, the billionaire founder of Elliott Management, is a Republican mega-donor who opposed Donald Trump during the real-estate magnate’s run for the presidential nomination but has since come onside. Neither Elliott nor Twitter immediately offered comment. Elliott Management is an activist investor, which means it regularly pushes for change in companies in which it buys shares. While under pressure from Elliott, Dorsey said last week he'd reconsider the move to Africa, blaming coronavirus fears "and everything else going on.". Shares of Twitter fell 3.0% Monday while the Dow Jones Industrial Average fell 7.8% amid coronavirus fears and a dip in oil prices. In addition, Silver Lake will make a $1 billion investment in Twitter, according to the announcement . Twitter struck a deal with investment firms Silver Lake and Elliott Management that does not mention changes to Jack Dorsey's role as CEO, the company announced Monday. Pichette will chair the committee, which "will provide a fresh look at our various structures, and report the findings to our Board on an ongoing basis," he said. Bloomberg News first reported that Elliott Management has taken a “sizable stake” and “and plans to push for changes at the social media company, including replacing Dorsey”. The deal comes after Elliott's attempt to oust Jack Dorsey as CEO. Elliott Management Corporation is one of the oldest fund managers of its kind under continuous management. The $40.2 billion hedge fund run by Paul Singer has taken a … Silver Lake managing partner and co-CEO Egon Durban and Elliott partner Jesse Cohn will join the board as Twitter continues to search for a third new independent director with expertise in technology and artificial intelligence. "[I]n 2020 and beyond," the company seeks to grow monetizable daily active users (mDAUs) "at 20% or more." Why it matters: Elliott has become the top agitator in tech, and often gets what it wants. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Twitter has reached a deal with investment firms Elliott Management and Silver Lake, the company announced Monday. Elliott Management has nominated four directors to the board at Twitter, setting the stage for a potential showdown between the most activist hedge fund and the influential social-media company. Jack Dorsey is currently CEO of Twitter and fintech firm Square Why you can trust Sky News Activist hedge fund Elliott Management, owned by the billionaire Trump supporter Paul Singer, has purchased a large stake in Twitter in a bid to oust its chief executive Jack Dorsey, according to reports. Elliott's campaign to remove Dorsey as CEO came after the executive announced plans to temporarily move to Africa while running both Twitter and Square. Elliott Management, activist investor founded by billionaire Paul Singer, had purchased a $1bn stake in the company Dominic Rushe Mon 9 Mar 2020 14.20 GMT. Twitter made headlines in October when it announced a ban on political advertising. Twitter and activist hedge fund manager Elliott Management agreed to a truce on Monday that leaves its co-founder and chief executive Jack Dorsey in place but shakes up the company’s board. NEW YORK (AP) — Twitter shares rose Monday following reports an activist investor took a stake in the social media service and plans to push for changes. A major Republican donor has purchased a stake in Twitter and is reportedly seeking to oust its chief executive, Jack Dorsey. Sign up for free newsletters and get more CNBC delivered to your inbox, Get this delivered to your inbox, and more info about our products and services.Â, © 2021 CNBC LLC. Twitter has reached a settlement with activist investor Elliott Management that includes tech investor Silver Lake taking a $1 billion stake in the social media giant and co … Location of This Business 1000 2nd Ave Ste 1440, Seattle, WA 98104-3613 Email this Business Elliott Management executive Jesse Cohn, who had been the driving force behind Elliott’s campaign to replace Dorsey, is getting a seat on Twitter’s board of directors. Dorsey needs to focus on what's best for Twitter. The investment firms will each be awarded a seat on Twitter's board, according to the announcement. A major Republican donor has purchased a stake in Twitter and is reportedly seeking to oust its chief executive, Jack Dorsey. A Republican mega-donor has purchased a “sizeable stake” in Twitter and is reportedly seeking to oust its founder Jack Dorsey. Elliott has taken a roughly $1 billion stake and been in talks with Twitter management about its desire for the company to find a full-time chief executive officer, the person said. Elliott launched a campaign to remove Dorsey as CEO after he announced he would temporarily move to Africa while running both Twitter and Square. Elliott Management acquires $1 billion stake in Twitter, nominates four directors, and wants to see Jack Dorsey out as CEO. Got a confidential news tip? Although Twitter did not need to raise new capital, the company viewed Silver Lake's $1 billion investment as an opportunity to return more capital to investors and to name someone new to the board in addition to an Elliott representative, the source said. Elliott Management founder and billionaire investor Paul Singer is seeking to replace Twitter CEO Jack Dorsey, a person familiar with the matter told … Twitter's board will create a temporary committee "that will build on our regular evaluation of Twitter's leadership structure," lead independent director Patrick Pichette said in a statement. News of the Elliott stake saw Twitter’s share price rise on Friday, during general market slides in the midst of the coronavirus outbreak. Last week, Dorsey said he might cancel those plans, partially blaming coronavirus fears. WATCH: Facebook and YouTube need to be more aggressive about false information, says former Twitter CEO. Twitter CEO, amid coronavirus fears and a dip in oil prices. Twitter CEO Jack Dorsey addresses students during a town hall at the Indian Institute of Technology (IIT) in New Delhi, India, November 12, 2018. A source familiar with the agreement told CNBC that Silver Lake reached out to Twitter about an investment after Elliott took its stake in the company and attempted to oust Dorsey. Dorsey, a co-founder of Twitter, is also chief executive of Square, an online payment company. Twitter also shared new metric goals in its announcement. Elliott Management, the hedge fund founded by Paul Singer, has taken a considerable stake in Twitter, Bloomberg reported, citing people familiar with the matter. New York (CNN Business) Hedge fund Elliott Management Corp. has obtained a large stake in Twitter and is advocating for changes, including possibly … All Rights Reserved. ", According to the terms of the agreement, Elliott Management and Silver Lake will not "comment on or influence, or attempt to influence, directly or indirectly, any Twitter policies or rules, or policy or rule enforcement decisions, related to the Twitter platform.". Twitter hopes to find a candidate that reflects "the diversity of the Twitter service," according to the release. The deal, which does not change Dorsey's role as CEO, includes a $1 billion investment in Twitter from Silver Lake. SAN FRANCISCO — Twitter said on Monday that it had reached a deal with Elliott Management, the activist investor that called for ousting the social media company’s chief executive, Jack Dorsey. In November, he announced a plan to live and work in Africa for part of each year. Singer has even taken on whole countries: in 2016, after a relentless campaign, he secured a partial repayment of debts by Argentina, arising from its financial collapse in the early 2000s. Elliott trades in securities across the capital structure and often will take a leading role in event-driven situations to create value or manage risk. Data is a real-time snapshot *Data is delayed at least 15 minutes. Twitter also entered into a Cooperation Agreement with Elliott Management Corporation ("Elliott"), an investment firm whose affiliated funds own approximately 4% … Focus first on workers, then users, then investors. We want to hear from you. Pichette's statement also expressed confidence in Dorsey's ability to run both companies at once. Twitter has reached a deal with investment firms Elliott Management and Silver Lake, the company announced Monday. The company recently changed its reported user metric to mDAUs, which it says only counts users that can be targeted with ads and are not comparable to other common industry metrics like DAUs. Dear Elliott Management, As long-term shareholders of Twitter, we think efforts to oust co-founder Jack Dorsey from the CEO role again would be as detrimental to Twitter’s evolution and growth today as it was in 2008. 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