Twitter Strikes Deal with Activist Investors to Keep Jack Dorsey as CEO

Twitter Strikes Deal with Activist Investors to Keep Jack Dorsey as CEO

Twitter said Monday it has entered into a cooperation agreement with Elliott Management, an activist investment firm that had been pressing for changes including the possible ouster of CEO Jack Dorsey. This announcement represents a major victory for Bitcoin and the crypto community.

The board, along with its new members, will also form a committee to evaluate a succession plan with Dorsey and make recommendations on corporate governance.

Elliott Management Corp, which owns about four percent of Twitter's stock, will get one seat on Twitter's board.

According to the release, Twitter Inc continues its search for a third new independent director with expertise in technology and artificial intelligence, a candidate that would "reflect the diversity of the Twitter service".

Silver Lake will invest $1 billion in Twitter which the company said it would use to help fund a $2 billion share repurchase program.

Elliott's head of US activism, Jesse Cohn, will join Twitter's board immediately alongside Egon Durban, co-chief executive of Silver Lake, the firms said in a joint statement. "The company's board is creating a temporary board committee that will "provide a fresh look" at Twitter's executive leadership structures".

Silver Lake's investment will be made through Twitter's 0.375% convertible bonds due 2025.

"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", said Patrick Pichette, lead independent director of San Francisco-based Twitter, in Monday's statement.

Elliott's criticism, echoed by other investors, was that Dorsey, who is the CEO at Twitter and Square, was splitting his time between two companies that each deserve a full-time CEO.

As part of today's deal, Elliott Management and Silver Lake have signed a standstill agreement, ceasing any further push for Dorsey's removal.

Twitter also funds a team of developers who are working purely on advancing the Bitcoin ecosystem.

Twitter founder Jack Dorsey is, in some unusual way, the modern-day version of Jack Welch. Add your thoughts below!

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