Elliott Management founder and billionaire investor Paul Singer is seeking to replace Twitter CEO Jack Dorsey, a person familiar with the matter told … Dorsey needs to focus on what's best for Twitter. Elliott Management Corporation is one of the oldest fund managers of its kind under continuous management. Elliott launched a campaign to remove Dorsey as CEO after he announced he would temporarily move to Africa while running both Twitter and Square. Twitter CEO Jack Dorsey addresses students during a town hall at the Indian Institute of Technology (IIT) in New Delhi, India, November 12, 2018. ", 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.". 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. "[I]n 2020 and beyond," the company seeks to grow monetizable daily active users (mDAUs) "at 20% or more." 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. 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. New York-based hedge fund Elliott Management and affiliated funds own about 4% of Twitter stock. 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. 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. We want to hear from you. Trump famously communicates with the public largely through Twitter, at the expense of traditional media strategy. The deal comes after Elliott's attempt to oust Jack Dorsey as CEO. In addition, Silver Lake will make a $1 billion investment in Twitter, according to the announcement . Twitter shares are spiking following reports that Elliott Management has taken a large stake in the social media company. 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. 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. A Division of NBCUniversal. 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. 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. Twitter hopes to find a candidate that reflects "the diversity of the Twitter service," according to the release. Data is a real-time snapshot *Data is delayed at least 15 minutes. Facebook and YouTube need to be more aggressive about false information: Fmr. Neither Elliott nor Twitter immediately offered comment. 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. Its use and potential manipulation by politicians of all stripes, from Trump to Democratic candidate Mike Bloomberg, remains a source of fierce contention. Elliott Management acquires $1 billion stake in Twitter, nominates four directors, and wants to see Jack Dorsey out as CEO. 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. Bloomberg first reported the news, which Axios has since confirmed with multiple sources. 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. 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. The deal, which does not change Dorsey's role as CEO, includes a $1 billion investment in Twitter from Silver Lake. All Rights Reserved. Twitter also shared new metric goals in its announcement. 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. It … 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 … Dorsey, a co-founder of Twitter, is also chief executive of Square, an online payment company. The deal gives both Silver Lake and Elliott a seat on Twitter's board and includes funding for a $2 billion share repurchase program. Twitter CEO, amid coronavirus fears and a dip in oil prices. 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 result, the company will fund a $2 billion share repurchase program, according to the announcement.Â. 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. Twitter has reached a deal with investment firms Elliott Management and Silver Lake, the company announced Monday. 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. 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. 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. Got a confidential news tip? It was reported that those moves were motivations for Singer’s desire to push Dorsey out. 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. 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 (CNN Business) Hedge fund Elliott Management Corp. has obtained a large stake in Twitter and is advocating for changes, including possibly … WATCH: Facebook and YouTube need to be more aggressive about false information, says former Twitter CEO. 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. 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. The investment firms will each be awarded a seat on Twitter's board, according to the announcement. A Republican mega-donor has purchased a “sizeable stake” in Twitter and is reportedly seeking to oust its founder Jack Dorsey. But it’s not enough for Elliott to agitate for change without making clear what Twitter should look like under new management. 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”. Elliott’s massive size means financial industry assets in Florida will increase by half, according to the research firm Prequin. Dorsey is the only person to lead two public companies with market valuations greater than $5 billion as CEO. 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. 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. Focus first on workers, then users, then investors. Twitter also entered into a Cooperation Agreement with Elliott Management Corporation ("Elliott"), an investment firm whose affiliated funds own approximately 4% … Confidence in Dorsey 's ability to run both companies at once CEO Jack Dorsey to live and work in for! 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