Investors push the Twitter founder overboard
'In the name of the progress'
The activist investor Elliott Management seems to be steering Twitter to a departure from top man and co-founder Jack Dorsey. Sources reported this to Bloomberg news agency. Elliott took a “significant interest” in the company, the exact size of which is not yet known, and is said to have nominated four directors for the management of Twitter. In any case, three board seats will become available during the coming shareholders’ meeting.
Elliott’s move comes at a crucial moment for the company. For example, the Americans are going to the polls later this year and the Summer Olympics are being held in Japan. These are events that attract users and advertisers to Twitter. This also applies to the outbreak of the new corona virus.
According to tech experts, Twitter is lagging behind innovation in other social media such as Snap and Instagram. Dorsey’s position is also not undisputed because he is also in charge of payment company Square. Furthermore, unlike Mark Zuckerberg of Facebook and Snap founders Evan Spiegel and Bobby Murphy, Dorsey has no control over the company.
Elliott is certainly not the first investor to criticize Dorsey and Twitter’s policy. At the end of last year, Scott Galloway, marketing professor at the Stern School of Business at New York University, already expressed the necessary criticism of the company and the CEO. In a letter he already called on Twitter chairman Omid Kordestani to replace Dorsey.