Twitter Promises to Make More Money
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Last week it became public that much-feared activist hedge fund Elliott Management Corp. had bought about 4% of Twitter Inc.’s stock, nominated four directors for Twitter’s board, and planned “to push for changes at the social media company, including replacing Chief Executive Officer Jack Dorsey.”
It did not take long: Yesterday Twitter and Elliott settled for an assortment of measures that look, on the whole, like a comprehensive Elliott victory. Twitter will sell a billion dollars of convertible bonds to Silver Lake, the private equity firm, and buy back $2 billion worth of stock. Elliott will get one director (Jesse Cohn, its head of activism), Silver Lake will get another (Egon Durban, its co-CEO), and Twitter will add a third new independent director. Dorsey will stay, but there is ominous news for him: