Elliott Management (Investment management firm) has established an agreement with Twitter to save the role of Jack Dorsey, the executive director of social media.
Elliott will win a spot on Twitter’s board of directors after considering to repurchase $2 billion worth of stock, NBC reported on March 9. As part of the deal, private equity firm Silver Lake will invest $ 1 billion in Twitter and also get a seat on the board. The Board of Directors of Twitter, will continue to seek third board members.
Commenting on the deal, Dorsey outwardly said:
“Silver Lake’s Twitter investment is a strong vote of confidence in our work and our way forward. They are one of the most respected voices in technology and finance and they I am fortunate to have them as new partners and members of our Board of Directors. “
About Dorsey’s plan
Paul Singer, a billionaire investor and founder of Elliott Management, began pushing for the removal of Dorsey as Twitter’s CEO in late February. The driving force behind the move lies in the concern about Dorsey’s time, a split between the two $ 5 billion companies – the payment company Twitter and the cryptocurrency Square – and the desire to move to Africa.
Following the news of Dorsey, possibly eliminating, a number of major players in the cryptocurrency industry have voiced support for the implementer. Ethereum co-founder Vitalik Buterin and Tesla CEO Elon Musk, who is also known for the positive endorsement of the cryptocurrency, do not want Dorsey to resign from his Twitter.
Buterin specifically questioned the potential of a new potential CEO to replace Dorsey, saying: I am also #StandWithJack. Twitter certainly has flaws but @jack has done a much better job than what I expected / feared from a hedge fund appointed as CEO who replaced him.