Elliott developed a stake in Twitter, is pushing for changes: sources

Elliott developed a stake in Twitter, is pushing for changes: sources

New York City (Reuters) – Activist hedge fund Elliott Management, which typically presses technology companies to improve operations, has developed a stake in Twitter Inc ( TWTR.N) and is promoting modifications, consisting of removing the ceo, two people knowledgeable about the matter said on Friday.

FILE PICTURE: Paul Vocalist, creator and president of Elliott Management Corporation, speaks at WSJD Live conference in Laguna Beach, California, U.S., October 25,2016 REUTERS/Mike Blake/File Picture

Established by billionaire Paul Vocalist, New York-based Elliott is among the world’s greatest activist investors with more than $40 billion in properties under management and has actually targeted companies ranging from eBay to AT&T to SoftBank in the last months for enhancements.

Its latest target is the microblogging and social media network website and among the hedge fund’s requests is to change 4 directors, the people said.

Elliott is likewise aiming to get rid of the company’s chief executive, Jack Dorsey, who runs not just Twitter but Square ( SQ. N), another publicly traded business.

News of Elliott’s overtures sent out Twitter’s share price rising 7.7%to $3320 after its stock was damaged this week amid a broad market sell-off sustained by worries about the dispersing coronavirus and how it will affect earnings and economic growth.

Bloomberg was first in reporting the news that Elliott has established a stake in Twitter and is promoting changes.

Calls to Elliott and Twitter for remark were not instantly returned.

Dorsey, a popular figure in Silicon Valley, has signaled that he wants to relocate to Africa for as much as six months, a move that some experts have called possibly negligent.

Financiers have actually currently revealed issues that he has actually been splitting his time in between the 2 companies and a move abroad would likely fret them more, an expert said.

Elliott frequently settles with business where management wishes to avoid the expense and diversion of a loud proxy fight.

Early in 2019, the hedge fund won a board seat at eBay ( EBAY.O). By the middle of September, eBay’s chief executive, Devin Wenig, was out as the company said it was exploring a possible sale of properties.

Reporting by Svea Herbst-Bayliss; Editing by Sandra Maler and Stephen Coates

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