Twitter announced today that it has reached an investment agreement with technology investment firm Silver Lake and hedge fund Elliott Management, with CEO Jack Dorsey to remain as CEO. In a statement, Twitter said Silver Lake would invest $1 billion in the company. With that money, along with the company’s cash, Twitter will buy back $2 billion in stock.
Elliott Management, which owns about 4% of Twitter, will also get a board seat on Twitter, while Silver Lake will get one. To be precise, Silver Lake co-CEO and managing partner Egon Durban, and Elliott Management partner Jesse Cohn will join Twitter’s board.
Earlier this month, activist investor Elliott Management called on Twitter CEO Dorsey to step down and nominate four new directors. After the agreement, Dorsey will continue as CEO, meaning the two sides have reconciled.
“Twitter serves public dialogue, and our goal has never been more important,” Dorsey said. Silver Lake Investment Twitter is a strong vote of confidence in our work and future prospects. We are fortunate to have them as our new partner and board member. We welcome the support of Egon and Jesse and look forward to their positive contribution. “