Elliott Management Corp. – an activist investor belonging to billionaire Paul Singer – plans to shake up the management of Twitter.
As reported by Bloomberg on Saturday, Elliott has taken an important part in the social media messaging platform and, according to “people familiar with the subject”, plans to remove Jack Dorsey as CEO.
The hedge fund has already appointed four directors to the Twitter board, the sources said.
Dorsey is also the head of the payment company Square and has become a darling of the crypto community for his advocacy in favor of bitcoin. He recently integrated a feature on Twitter that would display an icon for cryptocurrency if the #bitcoin tag was published.
Dorsey has also set up a dedicated unit within Square to work to advance bitcoin technology. Square’s Cash app offers Bitcoin services, which provided almost half of its revenue in the fourth quarter of 2019.
In his time as Commander-in-Chief of Twitter, however, he saw criticism of his management style, the platform failing in the eyes of some people to be innovative enough and focusing instead on its basic messaging service .
Since Dorsey returned to head of Twitter in mid-2015, corporate shares have fallen 6.2%. Facebook, on the other hand, increased by more than 121% over the same period, according to the report.
Bloomberg sources suggested that, with three board seats that will become available at the company’s next annual meeting, Elliott wanted to be sure to nominate enough candidates to fill the vacancies.
The investment company has had private talks with Twitter about its concerns, said Bloomberg.
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