NOVEMBER 29, 2021 — TWITTER CO-FOUNDER AND CEO JACK DORSEY PUSHED OUT THE DOOR BY ACTIVIST INVESTOR
Red flags are flying for Twitter personnel as CEO Jack Dorsey leaves the top post at Twitter to be replaced by Chief Technology Officer Parag Agrawal. Bret Taylor, Salesforce.com Inc. president and chief operating officer, was named chairman of the board.
Most major changes in senior management end in a restructuring and cost-cutting initiative.
MARCH 17, 2020 — Original post…
Historically, when an activist investor places a large bet on a company, the company’s management is on notice that they are expected to cut costs, divest under-performing business units, improve share prices, declare upstream dividends and disbursements, and buy-back shares to improve their financials. If management does not act quickly enough, they are often challenged to put representatives of the activist investor on the Board of Directors and possibly change senior management.
So what does it mean for San Francisco, California-based Twitter and its employees now that activist investor Paul Singer’s New York, City, New York-based Elliott Management has made a significant investment and is demanding changes, possibly including the removal of CEO Jack Dorsey?
In late-breaking news, it appears that a deal has been struck between Twitter and Elliot Management that would leave Jack Dorsey, but appoint two new board members, search for another independent director and repurchase $2 billion in Twitter stock giving Elliot an instant profit. $1 billion in additional funding will come from Menlo Park, California-based Silver Lake Partners, a well-known technology investment fund.
So what will happen to the employees?
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?