News Contact Us

Twitter’s CEO Jack Dorsey survives scrutiny from activist Investor

Author : Pankaj Singh | Published Date : 2020-11-04 

Shortly after Twitter Inc.’s board of directors commenced its search for a new chief executive officer in March, the company said it would only allow someone willing to commit to the job full time. It was a clear message to Twitter’s interim chief executive, Jack Dorsey, that he would have to leave his job role as CEO for payment company Square if he wanted to lead social media firm permanently.

Today, Twitter’s board of directors reversed itself, announcing that it has decided to allow Mr. Jack Dorsey to lead both firms after all. The decision to retain Mr. Dorsey came despite lingering reservations by few directors who pointed out that Twitter required a full-time chief executive. This announcement gives Mr. Jack Dorsey a relief after his leadership at Twitter drew scrutiny in this year from Elliott Management Corporation, which is one of toughest activist investors in U.S financial market.

This news, and the social media giant’s avowal to commence the stock-repurchase plan it announced just before the COVID-19 pandemic, sent the Twitter stock price up 2 percent in after-hours trading. The company’s filing comes eight months after Twitter inked an agreement with Elliott Management to repurchase USD 2 billion of its shares, partly funded through a USD 1 billion investment from PE firm Silver Lake. The company’s shares are up 23 percent this year. The broader S&P 500 index has also enhanced 2.5 percent this year.

Reportedly, Dorsey first served as the CEO of Twitter until 2008, when he was substituted by Ev Williams who is one of the co-founders of the company. Williams had accused Dorsey of being a poor administrator and not concentrating enough on Twitter’s profitability.

Later, Dorsey returned to the company as interim CEO after Dick Costolo resigned. Dorsey’s knowledge of Twitter and the quick launch of novel products encouraged Twitter’s board to hand him the reins permanently.

Source credit - https://www.marketwatch.com/story/jack-dorsey-to-remain-twitter-ceo-company-to-finally-start-stock-repurchase-plan-2020-11-02


About Author

Pankaj Singh

Pankaj Singh

Endowed with a post graduate degree in management and finance, Pankaj Singh has been a part of the online content domain for quite a while. Having worked previously as a U.K. insurance underwriter for two years, he now writes articles for fractovia.org and other online portals. He can be contacted at- [email protected] | https://twitter.com/PankajSingh2605

Related News

No-deal Brexit would cost UK more than COVID-19, warns BoE Governor

Published Date: 2020-11-25         Author: Pankaj Singh

Bank of England Governor, Andrew Bailey, has reportedly warned that the economic cost of a no-deal Brexit would be much more significant in the long haul than the one caused by the COVID-19 pandemic. Bailey stated that failure to finalize a deal prior to the expiration of the Brexit transition by... Read More

Bega to raise $400 million to buy Lion Dairy and Drinks business

Published Date: 2020-11-24         Author: Pankaj Singh

Bega Cheese, a leading Australian diversified food company, reportedly looks set to include yogurt in its product portfolio after beating Tanarra Capital and global dairy giant, Saputo Inc., in the bid to buy-out the Lion Dairy and Drinks business. The deal, valued at $550 million, is currently i... Read More

Israel orders 10 million doses of AstraZeneca’s COVID-19 vaccine

Published Date: 2020-11-23         Author: Pankaj Singh

The Government of Israel has reportedly signed a new agreement to purchase 10 million doses of the COVID-19 vaccine developed by the Oxford University. This new announcement was jointly made in a statement by the pharmaceutical firm AstraZeneca, who is producing the vaccine, and the Israeli governme... Read More

© 2020 Fractovia. All Rights Reserved