Mar 9, 2020 - Economy & Business

Jack Dorsey to remain as Twitter CEO after deal with Elliott Management and Silver Lake

Twitter CEO Jack Dorsey. Photo: David Becker/Getty Images

Twitter announced Monday that it struck a deal with investment firms Silver Lake and Elliott Management that will allow CEO Jack Dorsey to remain in his position.

Between the lines, via Axios' Dan Primack: With the agreement, activist investor Elliott may get what it wants in terms of a higher short-term share price, but it does nothing to satisfy its original complaint about Twitter needing a full-time CEO.

  • The deal involves a $1 billion investment from Silver Lake, which will fund a $2 billion share repurchase program.
  • Silver Lake co-CEO and managing partner Egon Durban and Elliott Management partner Jesse Cohn will join Twitter's board as part of the deal.

What they're saying:

  • "Jack is a visionary leader, and a critical force behind Twitter's ongoing evolution and growth. I look forward to working alongside the entire Board and the executive team to drive Twitter's long-term innovation and success," Durban said in a news release.
  • "We invested in Twitter because we see a significant opportunity for value creation at the Company. I am looking forward to working with Jack and the Board to help contribute to realizing Twitter's full potential," said Cohn.

Go deeper

Twitter CEO Jack Dorsey rethinks Africa plan amid coronavirus outbreak

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Twitter CEO Jack Dorsey said at a Morgan Stanley conference in San Francisco Thursday that he was re-evaluating his plan to spend several months in Africa this year.

Between the lines: Dorsey specifically blamed the ongoing coronavirus outbreak, though his decision also comes as Twitter struggles with tough content and business issues and as an activist investor, Elliott Management, is seeking his ouster.

The parallels between Jack Dorsey and Jack Welch

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Twitter founder Jack Dorsey is, in some strange way, the modern-day version of Jack Welch.

The big picture: Dorsey, the embattled yet sensitive founder and CEO of Twitter and Square, has almost nothing in common with Welch, the corporation man who led General Electric as it became the largest company in America. Yet Dorsey exemplifies today's West Coast leaders just as Welch helped to define the celebrity CEO of the 1980s and '90s.

Twitter cracks down on coronavirus misinformation from Giuliani, Bolsonaro

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It's notable that Twitter, like other social networks, has announced stricter rules on virus-related misinformation than other types of false posts. Even more notable, though, is that Twitter has actually enforced its rules against prominent accounts in recent days.

Why it matters: Twitter has been criticized for being lax to enforce its rules, particularly against well-known politicians and celebrities.