Twitter’s Jack Dorsey is under fire from Elliot Management as the investor seeks to push him out as CEO.
Paul Singer, founder of Elliot Management, has managed to acquire a 4% stake in the social media company with the goal of pushing for a CEO change. At the heart of the issue is Dorsey’s time being split between the company he originally co-founded and his new company Square, where he also serves as CEO. There is also concern that Dorsey plans on spending several months living in Africa this year, further raising questions about his ability to focus on his role as Twitter’s head.
Twitter recently announced its first $1 billion quarter, illustrating the untapped potential the company has. According to Real Money’s Eric Jhonsa, many investors applaud Elliot’s moves, and believe Dorsey and upper management are largely to blame for Twitter being eclipsed by newer rivals.
At least one high-profile individual is coming to Dorsey’s defense, as Elon Musk has tweeted his support. Like Dorsey, Musk also serves as CEO of two companies, and that perspective likely plays a role in his support.
Just want say that I support @Jack as Twitter CEO. He has a good ❤️.
—Elon Musk (@elonmusk) 3/2/20
It will be interesting to see if Elliot Management succeeds in ousting Dorsey, or if he is able to rally enough support to stay.