In early March, Twitter received a proposal for a change in power, including CEO Zach Douch, from Elliott Management, an investor that owns 4% of the general stock. However, Twitter announced that it had signed a partnership agreement with Elliott Management while securing $1 billion in funding from investment fund Silver Lake, and decided to take over as CEO Jack Doh.
Of course, Twitter has announced that it will join Silver Lake co-CEO Egon Durban and Jesse Cohn, suggested by Elliott Management, as new directors. In addition, in order to raise the stock price, it has also purchased 2 billion dollars of treasury stock by adding funds to the $1 billion it secured from Silver Lake. In addition, it announced that it is looking for a third new independent director candidate with AI technology expertise.
Elliott Management’s CEO hard move broke out as Jack Dorsey thought about temporarily moving to Africa. In addition to Twitter, Jack Doshi is also working as CEO of payment service Square.
Meanwhile, while the CEO went to Africa, there was an internal coordination problem on Twitter, and Elliott Management insisted that Jack City had no time. Eventually, the trip to Africa was canceled in consideration of the response to the CEO’s hard proposal and the spread of Corona 19 infection. In this context, concerns have been pointed out on Twitter that Elliott Management will pressure them to follow their conservative right-wing policy. However, with this investment agreement, Twitter said that neither Elliott nor Silver Lake affected the establishment or implementation of content policies.
For now, Jack Dorsey seems to be holding the position of CEO, but with the acceptance of two investment companies, Twitter is likely to face the need to raise its share price and show sustained growth. Twitter is planning to increase the number of daily active users that will lead to revenue this year by more than 20%. It is a strategy to accelerate sales growth compared to the previous year from 2020 and secure a share of the digital advertising market. Related information can be found here .