A new deal struck by Twitter and investment firms Silver Lake and Elliott Management won’t affect CEO Jack Dorsey’s position with the company, according to CNBC. The latest development comes after Elliott’s attempts in recent weeks to oust Dorsey.
The deal encompasses a $1 billion investment in Twitter from Silver Lake; in turn, Twitter will fund a $2 billion share repurchase program.
After the announcement on Monday (March 9), shares in Twitter were up 3 percent, even as other stocks were down amid coronavirus fears and slumping oil prices.
The deal also gives the investment firms seats on Twitter’s board, with Silver Lake Co-CEO and Managing Partner Egon Durban and Elliott Partner Jesse Cohn joining. However, neither investment firm will comment on or influence Twitter policies or rules, the announcement stated.
Twitter will also continue its search for another independent director, particularly one with knowledge of technology and artificial intelligence (AI). The company is seeking a candidate “that reflects the diversity of the Twitter service,” according to a press release.
According to the report, Twitter’s board is creating a temporary committee “that will build on our regular evaluation of Twitter’s leadership structure,” noted Lead Independent Director Patrick Pichette, with the goal of achieving a fresh perspective and keeping the board apprised of their findings.
Elliott’s initiative to oust Dorsey began while the CEO decided to temporarily relocate to Africa while heading up Twitter and Square. Dorsey has the distinction of being the only person to act as CEO for two companies that have market valuations exceeding $5 billion. Dorsey ultimately canceled the Africa plans, due to the pressure from Elliott as well as health concerns regarding the coronavirus outbreak.
Pichette called both the company’s CEO structure and Dorsey himself “unique.”
In its announcement, Twitter also relayed new goals, seeking to grow its monetizable daily active user base by 20 percent this year and accelerate revenue growth overall.