Twitter shares jump as Elliott makes move to oust founder Jack Dorsey
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Shares in Twitter rose more than eight per cent in early trading in New York this afternoon after it emerged an activist investor has launched a bid to oust founder Jack Dorsey.
Elliott Management has built up a stake in the social media firm and has nominated four directors to its board.
The New York-based hedge fund, which was founded by billionaire Paul Singer, is also plotting to replace Dorsey as chief executive.
The share price rise, which took Twitter’s valuation to almost $28bn (£22bn), came amid a volatile open for US stocks as coronavirus fears continue to roil global markets.
Elliott’s shake-up at Twitter, first reported by Bloomberg, is focused on Dorsey’s dual role as chief executive of Square, the payments company he co-founded in 2010.
Dorsey, who holds a two per cent stake in the social media firm, is one of the only people to run two public companies at the same time.
He has also raised eyebrows over plans to spend at least six months in Africa in 2020.
It comes at a key time for the company, which plans to grow headcount by 20 per cent or more this year and is gearing up for major events such as the Tokyo Olympics and US presidential election.
Elliott has a track record of clashing with some of the world’s largest companies. Last month the hedge fund revealed a three per cent stake — worth $2.5bn — in Japanese giant Softbank, where it is urging changes at the ailing $100bn Vision Fund.