Twitter’s shares jumped 7.9 percent on Monday after activist investors demanded the resignation of CEO Jack Dorsey on Friday. Stocks rallied this week as U.S. stocks rallied last week as investors worried that the coronavirus continued to rage. In the rally, Twitter’s market value rose by more than $2 billion to $28 billion.
Paul Singer, the billionaire founder of Elliott Management, has spoken out in the hope that Dorsey will step down. Why? Because Dorsey also manages Twitter and Square, and is ready to spend 3-6 months in Africa. Mr Singhal, who owns a large number of Twitter shares worth more than $1bn, has nominated four new directors. Elliott Management also met with Twitter to discuss the matter, but Dorsey did not attend.
Twitter’s leadership structure is a bit different from other publicly traded companies. Indeed, some tech CEOs also run companies, such as Tesla CEO Elsus, but Dorsey is the CEO of two publicly traded companies with a market capitalisation of more than $5 billion.
We don’t know exactly how much Elliott Management owns twitter, but looking back, it has encouraged at-the-top and eBay to change management.
Michael Levine, an analyst at Pivotal Research Group, said in a note that Mr. Singhal’s request to replace Mr. Dorsey and nominate four new directors is likely to be fulfilled. Mr. Li believes that if Twitter hires a professional COO, it could really enhance its operational capabilities.