Twitter f lags misleading post
But not all users can see the warning about the edited video of Joe Biden posted by the Trump team.
Twitter Inc. will appoint three new directors to its board and create a committee to review its leadership and governance, as part of an agreement with activist investor Elliott Management Corp. and private equity firm Silver Lake. The pact leaves Chief Executive Jack Dorsey in place.
Silver Lake will also make a $1-billion investment in the social media company, which Twitter plans to use to fund part of its first-ever share buyback, set at $2 billion.
Elliott’s head of U.S. activism, Jesse Cohn, will join Twitter’s board immediately alongside Egon Durban, cochief executive of Silver Lake, the firms said in a joint statement.
A third independent director will be appointed at a later date.
The board will also form a committee, including Cohn and Durban, that will evaluate a succession plan with Dorsey and make recommendations on the company’s corporate governance, including the potential elimination of its staggered board. The committee plans to share the results of its review by year’s end.
Twitter’s shares initially rose on the news, but they finished Monday down 3% at $32.46.
The settlement comes a little more than a week after Bloomberg News first reported that Elliott took a sizable stake in Twitter to push for changes, including potentially replacing Dorsey.
The New York-based firm nominated four directors to Twitter’s board, people familiar with the matter said at the time.
Elliott took issue with Dorsey dividing his time between running Twitter and his role as CEO of Square Inc., the payment company, the people said.
Dorsey had also said he planned to spend up to six months of the year working in Africa, a plan he has since said he will reevaluate.
“As a board, we regularly review and evaluate how Twitter is run, and while our CEO structure is unique, so is Jack and so is this company,” Patrick Pichette, lead independent director of San Francisco-based Twitter, said in Monday’s statement.