Jack Dorsey Could Be Kicked Off as Twitter CEO As Major Investor, Elliot Management Pushes for Change
Twitter’s founder, Jack Dorsey might be replaced at his job as Twitter CEO. This is as a major investor of the microblogging platform, Elliot Management pushes for a new person at the helm of affairs.
Elliott Management is a $40 billion hedge fund run by the billionaire Paul E. Singer. It bought a sizable stake in Twitter worth about $1 billion. According to reports, the investor wants to push Dorsey out in a bid to make Twitter’s value rise.
This will, in turn, make the value of Elliott’s Twitter shares rise.
This move stems from the investor’s concern that Dorsey hasn’t focused enough as Twitter CEO as he is also the CEO/founder of payments company, Square.
This concern is not entirely invalid. Reports show that Twitter shares are worth less now than they were when Dorsey returned as CEO in 2015. Despite its seeming popularity, the platform has struggled to grow its business at the same pace as its biggest competitors in Silicon Valley like Facebook.
Facebook, for example, made $21 billion in ads revenue in Q4 2019, while Twitter’s revenue passed $1 billion for the first time.
Although Elliott Management’s stake is not enough to take control of the company, the firm wants to use it to rather replace four Twitter board members with its own nominees.
Beyond his twin jobs as CEO, Dorsey has also brought attention to himself for many other things both as Twitter’s boss and as a person. In November, he visited Nigeria as part of his listening and learning tour in Africa. He also visited a few African countries and their startups. Soon after, he announced via a tweet that he is moving to Africa for three to six months this year.
With pressure from Elliot Management, Dorsey might have to leave the role of CEO in the company he founded yet again. The other option will be to step down from running Square as well as his plans to live in Africa and put his whole attention on Twitter’s operation. Either way, it remains to see how it will all play out.
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