Twitter and Elliott Management Strike a Deal: What You Need to Know
Here's something to tweet about. It looks like Jack Dorsey is here to stay. Twitter has reached a deal with Elliott Management under which Dorsey will remain CEO of Twitter.
In addition, Twitter (TWTR) pledged to buyback $2 billion in stock and Silver Lake pledged a $1 billion investment in the social media giant.
Twitter is down over 5% in early trading, reflecting the broader selloff which triggered a halt in trading following Monday's opening bell.
Catch the full details of the deal between Twitter and Elliott in the video above.
Transcript:
We have some breaking news out of Twitter...The company has announced a partnership with Elliott Management and Silver Lake.
The partnership leaves Jack Dorsey as CEO of Twitter.
Silver Lake will make a $1 billion investment.
And Twitter's board has authorized a share repurchasing program.
Egon Durban, co-CEO of Silver Lake, and Jesse Cohn, a parter at Elliott, will be appointed to Twitter's board.
And Twitter's board will continue its search for a new independent director.
Elliott had previously reportedly taken a roughly $1 billion dollar stake and nominated four directors to the board, according to the Wall Street Journal.
In premarket trading, Twitter was down over 6%. The stock is up around 8% over the past year.
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