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Looks like a corner office might be opening up at Twitter HQ. *Jack reading this subtweet.*
Elliott Management has taken a $1B stake in Twitter, demanding sweeping changes across the board. In more ways than one. The activist firm approached Twitter privately about changes it’d like to see, and have supposedly had constructive discussions since.
Amongst these changes are board seats, with Elliott nominating four directors … even though there are only three seats up for grabs during this year’s annual meeting. The biggest change, however, deals with the head honcho himself, @Jack.
It’s rumored that Elliott wants to replace Jack as CEO, as the activist company is concerned with Twitter's lack of innovation and performance lately. Somebody wants an edit button. In a time where Snapchat and Facebook have focused on filters and stories, Twitter has chosen to focus on its core service, allowing its users to deliver hot takes 280 characters at a time.
This shouldn’t be a surprise though, as Twitter has been a potential target for years. Why? For starters, Dorsey is one of the only people to serve as CEO of two public companies at once. You see, when he’s not trying to keep tabs on trolls, he’s processing payments and helping grow businesses over at Square. I guess he can’t collect unemployment then.
Twitter only has one class of stock, which does not give Dorsey voting powers like other social media CEOs like the Zuck at FB, or Evan ‘the Schmeigel’ Spiegel at Snap.
Speaking of its stock ... it has fallen more than 20% since its piss poor Q3 earnings results, and the company blamed bugs its inability to sell ads and ‘accidentally’ sharing personal info.
The bottom line
Well, we might be saying goodbye to the beard after @Jack’s on again, off again relationship as CEO of Twitter since its founding 2006. It appears that Elliott wants Jack goodbye, as the removal of his nose ring didn’t have as much positive impact on Twitter's stock performance as he’d hoped.
During Jack’s latest tenure as CEO (since 2015), shares have fallen 6.2% while Facebook has risen over 121% ... is that bad?
Shares have now broken positive though, as $TWTR rose 7.8% from the news during after hours Friday.
Elliott Management Nominates Four Directors to Twitter’s Board [WSJ]
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