(Reuters) – Twitter Inc’s (TWTR.N) on Monday reached an agreement with Elliott Management, which Jack Dorsey stay in as the new chief executive and add three new directors will be nominated for a couple of days after the What’s the plan for the social media chief, was in the audience.
She is the head of the AMERICAN activism, Jesse Cohn, and the investment firm Silver Lake and co-chief executive officer, Egon Durban will join in on the social media site’s board of directors and the company’s plans for the appointment of a third party, the new director of the rapid.
Silver Lake is also investing $ 1 billion in Demand.
The agreement brings together the hedge fund Elliott, which owns a $1 billion stake in Twitter, and in Silver Lake, in an unusual arrangement that Dorsey will continue to lead the company for now, and will sidestep a potentially nasty proxy contest.
“As our CEO, the structure of which is unique, as is the Jacket and the company,” Twitter’s lead independent director, Patrick Pichette, said in a statement.
Twitter shares are up about 0.4% on the day of heavy selling on Wall Street.
At the end of the contract on Twitter, She keeps a close eye on Dorsey, while giving the company more time to formulate a long-term plan, and the repair of failures, or people who are familiar with Elliott’s thinking say.
She also added that the deal will avoid a mad scramble to find an immediate replacement for Dorsey.
Twitter’s Chief Financial Officer, Ned Segal, who was privy to the discussion said that he believed that the scheme will be manifested over the short-term support for the Dorsey.
“It is not thought of as a temporary. This is just to get back to work with the team, the strategy, the goals and the timeframe that we were working for,” he told Reuters in a telephone interview.
“This joining should be a great indication that Silver Lake has the support of the founder, the team, our strategy and our aspirations,” he said.
FILE PHOTO: The Twitter logo is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York City, united states of america, September 28, 2016. REUTERS/Brendan McDermid
Twitter said in a statement that they would make use of the Silver Lake investment, and to assist in the financing of a $2 billion share repurchase program.
Twitter also promised to grow daily users by 20 percent or more in 2020, and after that, more or less in line with the user growth in its most recent quarter, and the projections are that costs would have to rise by 20% this year.
The board of directors shall be a temporary committee for the evaluation of Twitter’s leadership structure and CEO succession plan, which is the results of the public by the end of the year.
At the end of last month, She was nominated four board members, on Twitter, that the board of directors and can be pushed to remove Dorsey, one of Silicon Valley’s most prominent entrepreneurs, to criticize him for being the CEO of two publicly traded companies, Twitter and Square (SQ.N), which is a mobile payments company that he co-founded.
Each of the company, She and other investors have argued, deserves to be a full-time position of chief executive officer.
The investors had also expressed concerns about Dorsey’s plan is to have three to six months of living in Africa this year, as he was returned last week with the quote of “everything that is going on in the world, and in particular by the corona virus.”
“We have invested heavily in Twitter, as we will see, a significant potential for value creation in the company,” She said Cohn. “I’m looking forward to working with Jack, and the board of directors to help contribute to the achievement of Twitter’s full potential.”
Cohn will now have three boards, including that of online shopping business with eBay, which agreed with the One at the beginning of 2019 at the latest. Devin Wenig, eBay’s CEO at the time, to the left, and nine months after She was given a seat, with an indication of the position of the board of directors.
By 2020, it promises to be a big year for Twitter, with people looking for news about the corona virus, the US elections, as well as the planned summer Olympics in Tokyo, japan.
The company has adopted more aggressive steps in recent months to limit the abusive behavior, and give people control over the content they see on the platform. It is also a reconstruction of the advertising system the following are technical problems that hurt the profit of the previous year.
Dorsey also told analysts in January that the roll-out of features at a faster pace and it was one of Twitter’s top priorities this year, with the understanding that the company had been slow in the process of converting ideas into products.
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Silver Lake has had its first tweet, ever, to announce the news, saying, “Silver Lake is excited to partner with @Twitter to invest in, and membership of the board of directors, and we look forward to working with @Jack and the team.”
Social media is one of the few U.S. technology companies, in the main, but it is not controlled by one or more of the company’s founders. It has given the shareholders an equal right to vote, and the creation of Dorsey, who is the owner of only about 2% of the company to be vulnerable to a challenge from an activist investor, such as The.
Reporting by Svea Herbst-Bayliss in Boston, Katie, Paul, in San Francisco, Supantha Mukherjee in Bengaluru and Joshua Franklin in New York; editing by Peter Henderson, Nick Zieminski and Richard Pullin