- Twitter CEO Jack Dorsey recently announced that the company has made an agreement with investment firms Elliott Management and Silver Lake
Twitter CEO Jack Dorsey recently announced that the company has made an agreement with investment firms Elliott Management and Silver Lake. This deal comes on the heels of Elliott reportedly attempting to oust Dorsey as CEO of the company.
Going forward, Dorsey will remain the CEO of the company. Silver Lake will invest $1 billion in Twitter. And Twitter will set up a $2 billion share repurchase agreement. Plus the investment firms will each receive a seat on Twitter’s board.
Silver Lake managing partner and co-CEO Egon Durban and Elliott partner Jesse Cohn will be the representatives joining the board. Twitter will also continue to search for a third new independent director with expertise in technology and artificial intelligence. The Twitter board is going to create a temporary committee that will build on its regular evaluation of Twitter’s leadership structure.
Why did Elliott launch a campaign to have Dorsey ousted as CEO? Recently, Dorsey indicated an interest to temporarily move to Africa while still serving as the head of Twitter and Square. Dorsey is in the unique position of being the only person to lead two public companies with market valuations of over $5 billion. Last week, Dorsey said he would reconsider moving to Africa due to fears over the coronavirus and “everything else” that is going on. Elliott Management and its affiliated funds own approximately 4% percent of Twitter’s common stock and economic equivalents.
In a press release, Twitter also said it is planning to grow monetizable daily active users (mDAUs) at 20% or higher. And beyond 2020, the company is planning to “accelerate revenue growth on a year-over-year basis and gain share in the digital advertising market.”
Key Quotes:
“Twitter serves the public conversation, and our purpose has never been more important. 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. We welcome the support of Egon and Jesse, and look forward to their positive contributions as we continue to build a service that delivers for customers, and drives value for stakeholders.”
-Twitter co-founder and CEO Jack Dorsey
“Twitter has undergone remarkable change over the last several years. We are deeply proud of our accomplishments and confident we are on the right path with Jack’s leadership and the executive team. As a Board, we regularly review and evaluate how Twitter is run, and while our CEO structure is unique, so is Jack and so is this Company. To continue to ensure strong governance, we are pleased to create a temporary Board committee that will build on our regular evaluation of Twitter’s leadership structure. This committee, which I will chair, will provide a fresh look at our various structures, and report the findings to our Board on an ongoing basis. In an environment where certainty is scarce, I can say with certainty that today we have taken steps to meaningfully strengthen what is already a world-class Board.”
-Patrick Pichette, lead independent director of the Twitter Board
“Twitter’s revolutionary platform is a cornerstone of the public discourse. We are impressed by Jack’s tireless work over the last few years to solidify the leadership team, improve the product and strengthen the Company. We are excited to partner with Twitter as an investor and a member of the Board. Jack is a visionary leader, and a critical force behind Twitter’s ongoing evolution and growth. I look forward to working alongside the entire Board and the executive team to drive Twitter’s long-term innovation and success.”
-Egon Durban, co-CEO and managing partner of Silver
“Twitter is one of the most important platforms in the global dialogue, and one of the most innovative and unique technology companies in the world. We are pleased to have worked collaboratively with Twitter on this constructive engagement. We invested in Twitter because we see a significant opportunity for value creation at the Company. I am looking forward to working with Jack and the Board to help contribute to realizing Twitter’s full potential.”
-Jesse Cohn, partner at Elliott Management
