(Reuters) – Hedge fund Elliott Management Corp has a stake in Twitter Inc’s (TWTR.(N), and has been pushing for the changes, including the removal of the social media’s chief executive, Jack Dorsey, two people familiar with the matter said on Friday.
FILE PHOTO: Paul Singer, founder and president of Elliott Management Corporation, speaks at the WSJD Live conference in Laguna Beach, California, USA, on 25 October 2016. REUTERS/Mike Blake/File Photo
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.
Twitter shares have declined from last year, when the company announced that the platform will experience glitches that hampered the ability to target ads and information to share with our partners. The San Francisco-based company’s desire to expand out of its core, the platform is also limited in comparison with that of the larger social media to my colleagues.
Elliott, founded by billionaire Paul Singer, who directed the installation of its own nominees on Twitter’s seven-member board of directors three of the directors of the company will stand for election at the next annual general meeting of the shareholders, the sources said.
It is not clear who She would like Dorsey to replace and how much are the interest in Twitter. The New York-based hedge fund, has given more than $40 billion in assets under management, and is aimed at companies in the past few months, ranging from eBay Inc. (EBAY).(O) to the SoftBank Group Corp (9984.(T).
The sources asked not to be identified because the matter is confidential. She declined to comment. Twitter does not immediately respond to a request for comment. Bloomberg News first reported on Friday on The ‘ s position in the Family.
Dorsey, 43, is one of Silicon Valley’s most prominent entrepreneurs, and will also be of Square, Inc., BUILD.N), which is a mobile payments company that he co-founded.
Whereas, the investors will have to tolerate this arrangement, since 2015, when Dorsey was Twitter’s CEO for the second time, announcing in November that he would like to move to Africa for a maximum period of six months, the questions in the analyst community over its management.
Dorsey, who has helped with the development of Twitter in 2006 as CEO until 2008, when it was replaced by one of its co-founders, Ev Williams. Williams had been accused Dorsey of a bad manager and does not focus enough on Twitter to get the return on investment.
Dorsey will be back as interim CEO after his predecessor, Dick Costolo has resigned. Dorsey’s knowledge of the company, and the rapid introduction of new products, convinced that Twitter’s board of directors is to be handed over to him the reins on a permanent or temporary basis, for a couple of months later.
Dorsey was the first CEO of the two companies. Steve Jobs led Apple Inc’s (AAPL.Oh and the animated film studio, Pixar, for a number of years, and while Elon Musk runs the electric car pioneer Tesla Motors Inc. (TSLA.And rocket-maker SpaceX.
Reporting by Svea Herbst-Bayliss; Editing by Stephen Coates and Christian Schmollinger