Last week Elliott Management Corp. acquired an additional stake in Twitter Inc. (TWTR) of about $1 billion increasing their say in the social network company. Following the acquisition New York based and Paul Singer owned Elliot Management started advocating for some structural and management changes in Twitter.
Among the changes Elliott wants current Twitter CEO Jack Dorsey to step down as CEO of Twitter. They claim Dorsey can’t effectively manage two CEO’s positions at the same time since he also doubles up as the CEO of the fintech company Square Inc. (SQ).
Another reason the investment management firm is pushing for Dorsey’s exit from Twitter is due to his earlier announced plans of switching to Africa.
Third on the table Elliot believes getting rid of Dorsey will increase Twitter’s value on Wall Street meaning shares of the company will go up hence increasing its market share.
Nonetheless, sources involved with the matter revealed the latest investor in Twitter will be very much comfortable with Dorsey continuing with his tenure as the company’s CEO if he resigns as Square’s CEO to concentrate on Twitter only.
Founder and CEO of world’s largest electric car marker Tesla Inc. (TSLA) Elon Musk took on twitter to express his support to Dorsey.
Musk posted on Twitter saying he wanted to make it clear that he is supporting Dorsey. Additionally he claimed Dorsey has a good heart.
The two have always enjoyed a cordial relationship on Twitter at one time Dorsey publicly asked Musk on Twitter to give him guidance on how the social media platform can be improve for better use.
Equally, just like Dorsey Musk also doubles up as a CEO of two companies Tesla and SpaceX an aerospace manufacturer and space transport services company.