Elliott Management seeks Twitter CEO Jack Dorsey's ouster: Report

Dorsey also serves as CEO of Square

Billionaire investor Paul Singer’s Elliott Management has launched a bid to oust Twitter CEO Jack Dorsey from his position, according to a report on Friday.

Elliott Management has acquired a stake in the social media company and nominated four directors to Twitter’s board, Bloomberg reported, citing sources familiar with the matter. The investment firm has privately approached Twitter about its concerns.

Twitter declined to comment. Elliott Management did not immediately respond.

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Dorsey serves as CEO of both Twitter and mobile payments company Square. His dual roles have been a frequent target of criticism from investors.

In addition, Dorsey has said that he plans to live in Africa for up to six months in 2020. The decision roiled investors in both Twitter and Square.

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Ticker Security Last Change Change %
TWTR TWITTER INC. 37.67 -0.61 -1.59%

Twitter shares rose more than seven percent in after-hours trading Friday. The surge occurred alongside even as the Dow Jones Industry Average entered correction territory amid concerns related to the coronavirus outbreak.

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The company’s stock is up about two percent so far this year. Twitter has a market capitalization of roughly $26 billion.

The activist push comes months after Twitter saw shares plunge following a weak third-quarter earnings report. At the time, Twitter executives blamed “bugs” in its advertising platform that impacted revenue.

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