A power struggle began to occur underground on Twitter, since the investment firm Elliot Management, bought a considerable portion of the company's shares and now hopes to begin to make some changes to the platform.
This investment portfolio is dominated by Paul Singer, a billionaire afn to the Republican Party, who has made many donations to this group and who, however, opposed current President Donald Trump.
The idea according to the reports will be to give weight to the creator of Twitter, Jack Dorsey, who only has 2% of the shares of the company.
According to Reuters, "It is not clear with whom Elliott would like him to replace Dorsey and how large his participation in Twitter is. The New York-based hedge fund has more than $ 40 billion in assets under management, and has been directed at companies in the last months that go from eBay Inc ( EBAY.O) to SoftBank Group Corp (9984.T ) ”
Perhaps one of Paul Singer's substantial motivations is to reverse the decision of the current Twitter CEO to remove political ads from the platform. Many say that the interest lies precisely in the opportunity to regulate them better, but not remove them at all, as a way to give transparency to the operation of the platform in a few elections.
According to Bloomberg, who first published the news, Scott Galloway, a professor of marketing at the Stern School of Business at the University of New York, wrote a while ago about his own concerns as an investor in the company and how he wanted Jack Dorsey left his position as CEO.
"To be clear, my main goal is the replacement of CEO Jack Dorsey," Galloway said in aopen letterto the company's executive president, Omid Kordestani.
This also has to do with re-generating blue numbers on Twitter, since since 2015 that the company's shares with Dorsey in command have fallen 6.2%, while Facebook in those five years has grown by 121%.
With the announcement of the arrival of Elliot Management, Twitter shares rose from 0.6% a$ 33.20 dollars in New York on Friday, February 28, which gave the company a market value of approximately $ 26 billion of dollars.