The deal, which does not change Dorsey's role as CEO, includes a $1 billion investment in Twitter from Silver Lake. Twitter also entered into a Cooperation Agreement with Elliott Management Corporation ("Elliott"), an investment firm whose affiliated funds own approximately 4% … 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. 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. Microsoft is an American multinational technology company headquartered in Redmond, Washington, that develops, manufactures, licenses, supports and sells computer software, consumer electronics and personal computers and services. Twitter also shared new metric goals in its announcement. WATCH: Facebook and YouTube need to be more aggressive about false information, says former Twitter CEO. 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. Last week, Dorsey said he might cancel those plans, partially blaming coronavirus fears. 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. 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. Elliott launched a campaign to remove Dorsey as CEO after he announced he would temporarily move to Africa while running both Twitter and Square. In addition, Silver Lake will make a $1 billion investment in Twitter, according to the announcement . Dorsey is the only person to lead two public companies with market valuations greater than $5 billion as CEO. 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. 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. 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. 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 … ", 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.". In November, he announced a plan to live and work in Africa for part of each year. Twitter also entered into a Cooperation Agreement with Elliott Management Corporation ("Elliott"), an investment firm whose affiliated funds own approximately 4% … The deal gives both Silver Lake and Elliott a seat on Twitter's board and includes funding for a $2 billion share repurchase program. 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. A Division of NBCUniversal. Twitter hopes to find a candidate that reflects "the diversity of the Twitter service," according to the release. The investment firms will each be awarded a seat on Twitter's board, according to the announcement. Elliott Management Corporation is one of the oldest fund managers of its kind under continuous management. It … Elliott Management, the hedge fund founded by Paul Singer, has taken a considerable stake in Twitter, Bloomberg reported, citing people familiar with the matter. Why it matters: Elliott has become the top agitator in tech, and often gets what it wants. Twitter CEO Jack Dorsey addresses students during a town hall at the Indian Institute of Technology (IIT) in New Delhi, India, November 12, 2018. 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. "[I]n 2020 and beyond," the company seeks to grow monetizable daily active users (mDAUs) "at 20% or more." New York-based hedge fund Elliott Management and affiliated funds own about 4% of Twitter stock. Twitter has reached a deal with investment firms Elliott Management and Silver Lake, the company announced Monday. But it’s not enough for Elliott to agitate for change without making clear what Twitter should look like under new management. News of the Elliott stake saw Twitter’s share price rise on Friday, during general market slides in the midst of the coronavirus outbreak. 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. Dorsey, a co-founder of Twitter, is also chief executive of Square, an online payment company. Twitter CEO, amid coronavirus fears and a dip in oil prices. Activist investor Elliott Management is seeking to oust Twitter CEO Jack Dorsey, Bloomberg News reported late Friday. Got a confidential news tip? Focus first on workers, then users, then investors. Elliott Management acquires $1 billion stake in Twitter, nominates four directors, and wants to see Jack Dorsey out as CEO. 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. Elliott Management is an activist investor, which means it regularly pushes for change in companies in which it buys shares. 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. Its use and potential manipulation by politicians of all stripes, from Trump to Democratic candidate Mike Bloomberg, remains a source of fierce contention. A Republican mega-donor has purchased a “sizeable stake” in Twitter and is reportedly seeking to oust its founder Jack Dorsey. 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. 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 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. A major Republican donor has purchased a stake in Twitter and is reportedly seeking to oust its chief executive, Jack Dorsey. 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. As a result, the company will fund a $2 billion share repurchase program, according to the announcement.Â. We want to hear from you. While under pressure from Elliott, Dorsey said last week he'd reconsider the move to Africa, blaming coronavirus fears "and everything else going on.". Facebook and YouTube need to be more aggressive about false information: Fmr. Neither Elliott nor Twitter immediately offered comment. Data is a real-time snapshot *Data is delayed at least 15 minutes. 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. 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. Location of This Business 1000 2nd Ave Ste 1440, Seattle, WA 98104-3613 Email this Business 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. 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. 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. "As a Board, we regularly review and evaluate how Twitter is run, and while our CEO structure is unique, so is Jack and so is this Company," Pichette said. 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. Bloomberg News first reported that Elliott Management … The $40.2 billion hedge fund run by Paul Singer has taken a … New York (CNN Business) Hedge fund Elliott Management Corp. has obtained a large stake in Twitter and is advocating for changes, including possibly … Bloomberg first reported the news, which Axios has since confirmed with multiple sources. Twitter has reached a deal with investment firms Elliott Management and Silver Lake, the company announced Monday. Jack Dorsey, CEO of Twitter, and Elliott Management are getting ready to mix it up. Dorsey needs to focus on what's best for Twitter. 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 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. All Rights Reserved. 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. It was reported that those moves were motivations for Singer’s desire to push Dorsey out. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Twitter made headlines in October when it announced a ban on political advertising. Pichette's statement also expressed confidence in Dorsey's ability to run both companies at once. 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