Tech

Report: Hedge fund joins Twitter and wants to get rid of CEO Dorsey

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The US hedge fund Elliott Management is said to have acquired a significant stake in Twitter shares and is using its influence over the company to bring about changes and possibly also to replace Twitter CEO Jack Dorsey. The news portal reports Bloomberg News citing informed circles, which should remain anonymous.

Elliott Management is considered an investor activist and often uses his investments to transform and influence the company's strategy. The fund is owned by US billionaire Paul Singer, who is a major sponsor of the Republican Party of the United States. Singer supported a Republican competitor of Donald Trump (as part of the "Never Trump" movement) prior to the 2016 US presidential campaign, but sided with Trump after his election victory.

Criticism of Dorsey's leadership should be loud Bloomberg be a reason for Elliott Management's entry and the possible upcoming changes. Dorsey is a co-founder of Twitter. He also leads the payment service provider Square and has recently announced that he plans to work from Africa for part of the year. Some partners are said to have been dissatisfied with this constellation. After the participation of Singers hedge funds became known, the price of the Twitter share rose. The two companies initially did not comment on the report.

A desired, possibly also politically influenced reorientation of Twitter through a change at the top of the company harbors some discussion material. The globally popular short message service offers private individuals and organizations of all kinds a largely free opinion platform and therefore inevitably also fights with – partly automated – disinformation, conspiracy theories and incitement campaigns as well as with the escalating attempts to contain these excesses. Between the approximately 500 million tweets that go around the world every day, Twitter shows 'target group-oriented' advertising and has thus become an indispensable tool for influencing public opinion. It was only in October last year that the company decided not to allow political advertising.

There would be another element to connect Twitter and the investment company of a billionaire sponsor of the US Republicans: One of the most eager and probably most influential Twitter users is the incumbent US President Donald Trump. He expresses himself unrestrained and several times a day in tweets, in which he presents his very own view of world affairs and sometimes announces important diplomatic decisions against all customs. Trump also loves to applaud himself and rage against his opponents on Twitter, which has repeatedly earned him allegations of manipulation. For example, a distorted video of democrat Nancy Pelosi by Democrat disseminated on social media led to controversy over unfair political influence – Facebook finally deleted the video, but Twitter did not.


(Tiw)



. (tagsToTranslate) stock exchange (t) Elliott Management (t) Jack Dorsey (t) Twitter

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