Elliott Management, a large investment firm, purchased a $1 billion stake in Twitter. Activist investor Paul Singer, the founder of Elliott Management, aims to enforce structural changes in the board of the popular social network. The first step is to oust Twitter’s CEO and founder Jack Dorsey. Usually, forced resignations of top managers or a reshuffle arouses a painful response from shareholders. However, this is not the case for Twitter. Its shares spiked over 7% following the communique from the activist investor. The new investor doubts that Jack Dorsey is capable of running Twitter efficiently being the chief executive of two publicly traded companies. Apart from Twitter, he also leads Square, the financial services company which includes the Square Crypto division. That “split attention” accounts for the company’s underperformance and lack of innovative products compared to rivals. Eventually, the last straw was Dorsey’s intention to live and work in Africa for a year. Citing well-informed sources, Elliott Management acquired a 4% stake in Twitter, becoming one of the company’s largest investors. One thing is obvious – the new investor will insist on his own nominees in Twitter’s board.
