Elliott Management, the investment management firm, has set up a deal with Twitter to save the role of Jack Dorsey as CEO of the social media network.
On March 9, it has been reported by NBC that after the deal closure, which considers a $2 billion share buyback, Elliott will gain a seat on Twitter’s board of directors.
However, as part of the agreement, Silver Lake, a private equity firm, will invest $1 billion in Twitter and also get a seat on the board. Twitter’s board of directors will continue to look for a third board member.
By commenting on the deal, Dorsey said:
“Silver Lake’s investment in Twitter is a strong vote of confidence in our work and our path forward. They are one of the most respected voices in technology and finance and we are fortunate to have them as our new partner and as a member of our Board.”
Likewise, Paul Singer, a billionaire investor and the founder of Elliott Management, began pushing for the removal of Dorsey as the CEO of Twitter in late February. The impetus behind the move lay in concerns of Dorsey’s time split between two $5 billion-plus companies, Twitter and crypto payment firm Square — and his desire to move to Africa.
After the news about Dorsey’s possible removal, some of the major players in the crypto industry voiced support for the exec. Vitalik Buterin, the co-founder of Ethereum and Elon Musk, the CEO of Tesla, did not want Dorsey to step down from his position at Twitter.
Thus, Buterin specifically questioned the competence of a new potential CEO that would replace Dorsey, saying:
“I also #StandWithJack. Twitter certainly has flaws but @jack has done a vastly better job than what I expect/fear from a hedge fund appointed CEO swooping in to replace him.”
Source: nbcnews.com | cointelegraph.com | Image: theverge.com