Paul Singer and his hedge fund Elliott Management think Twitter needs a new CEO and CNBC’s Jim Cramer is in agreement.
The “Mad Money” host has sided with the activist hedge fund and on Monday said, “I think Twitter’s a buy, whether Jack Dorsey’s running it or not.”
In regards to current CEO Jack Dorsey, Cramer said, “I think the best thing he could do for his shareholders is just retire as CEO of Twitter and focus on running Square full time — or vice versa.”
He added, “If Elliott can succeed in electing three candidates to the board [of directors], I bet this is going to happen.”
Elliott Management holds more than a $1 billion stake in Twitter and according to a Bloomgberg report, the hedge fund wants Dorsey out.
Because of Dorsey’s divided attention as the head of two companies, Square and Twitter, Cramer said he is the “human embodiment of hubris.”
“It’s ridiculous to be a part-time CEO who spends six months a year hiding out in Africa,” Cramer said of Dorsey’s plans to move to Africa.
Cramer believes this year could be a “gigantic year” for the social media platform. “You’ve got the election, the Olympics [and] now the coronavirus outbreak. They’re going to have a huge audience and these activists shareholders want that company to monetize that audience effectively.”
“I’ve got to imagine the board’s patience is wearing thin because this isn’t bad corporate governance — it’s no corporate governance,” Cramer said. “If Elliott can succeed in electing three candidates to the board [of directors], I bet this is going to happen.”
Disclaimer: We have no position in Twitter Inc. (NYSE: TWTR) nor Square Inc. (NYSE: SQ) and have not been compensated for this article.