Elliott launches podcast in attack ploy aimed at Southwest
Add Axios as your preferred source to
see more of our stories on Google.
Illustration: Tiffany Herring/Axios
Elliott Management, known for the range of tactics it has deployed on its targets, has just added one more weapon to its arsenal: a podcast.
Why it matters: Elliott's new podcast is aimed straight at Southwest Airlines, and it shows how far the activist is willing to go when it comes to pushing its slate of director candidates.
Catch up quick: Elliott launched its Southwest campaign in June, a few weeks after the airline's annual shareholders meeting, calling for the CEO and its chairman to step down, among its demands.
- Axios was first to report that part of Elliott's attack plan involved exploiting one of Southwest's bylaws, which allows an investor the option of calling a special shareholders meeting to replace directors if it has a 10% stake in the company.
- Elliott officially launched its special meeting push on Monday, calling for a Dec. 10 meeting for shareholders to vote on its eight nominees.
Zoom in: On Tuesday, Elliott went a step further, saying it launched "Stronger Southwest," a new podcast series that will feature conversations with the hedge fund's director nominees.
- Episodes are available on StrongerSouthwest.com, Apple, Spotify, YouTube and other platforms.
- The first episode features Elliott's nominee Gregg Saretsky, the former CEO of WestJet.
- Elliott's podcast strategy marks the first time an activist has used the medium in this fashion.
The other side: "Elliott's Special Meeting request is unnecessary and inappropriate considering the extreme nature of Elliott's demands," Southwest said in a statement Monday.
- The company added that it has tried to reach an agreement with Elliott in an effort to avoid a proxy fight but the hedge fund has refused to engage.
- Southwest declined to comment on the podcast.
Between the lines: Podcasts increasingly have become core to communications strategies for a range of campaigns, including U.S. presidential candidates, tech CEOs and other individuals.
- The medium offers a friendlier and more conversational alternative to a traditional TV hit or another press interview. More professional athletes are launching them to speak directly to and connect with fans.
The bottom line: Elliott is hoping the podcast can put a spotlight on its board candidates and their credentials. Southwest's management is hoping shareholders will stand by their slate.
- Shareholders, in the end, will decide who gets elected.
