Rep. Mega-Donor Purchases a ‘Sizable Stake’ in Twitter; Plans to Oust Bitcoin Proponent CEO
- Elliott Management of billionaire Paul Singer has taken a “sizable stake” in Twitter intends to “push for changes”
Paul Singer, a Republican mega-donor has purchased a stake in San Francisco-based Twitter and allegedly aims to replace its current CEO – Jack Dorsey.
Singer’s Elliott Management has acquired a “sizable stake” in the social media platform, according to a Bloomberg report from this week.
It is now planning to push for some big changes, including replacing its current CEO and founder. Dorsey, who only owns 2% of the company, would be incredibly vulnerable to these plans.
Twitter users are responding to the news in droves, with some expressing concerns about Singer’s connections to President Donald Trump. Singer had previously donated $1 million to Trump’s inaugural committee.
Trump is highly active on Twitter, famously communicating with the public through the social media platform. In October, Twitter grabbed headlines by announcing a ban on political advertising.
Twitter founder, Dorsey, is also the chief executive of Square, the digital payment company. Dorsey is also the only CEO of two public companies that have market valuations of more than $5 bn. Last year, in Nov. he shared his plans to live and work in Africa for part of each year.
These moves are reportedly part of Singer’s broader desire to push Dorsey out as stakeholders have voiced concern about Dorsey's leadership.
Under Dorsey, Twitter's share price struggled continually. since rejoining the company as its CEO in 2015, shares have fallen 6.2% while Facebook’s gained 121% over the same time — although, for the first time it recently reported $1 billion in quarterly revenue.
On Friday, the news of the Elliott stake saw Twitter’s share price rising over 7% after hours. Dorsey has remained silent on this and his most recent tweets are about Bitcoin and Square.