Twitter CEO Jack Dorsey has come under threat from a new stakeholder who wants to oust him from the company amid fears he is distracted
Twitter shares soared on Monday after it emerged that a Republican mega-donor had bought a large share of the company and was attempting to oust CEO Jack Dorsey.
Paul Singer, founder of investment management firm Elliott Management, has taken a $1billion stake in the social media company and is planning to use his newfound influence to push for many changes, starting at the top.
He has nominated four directors, including two people from his New York-based hedge fund.
According to insiders cited by Bloomberg, Singer's main grievance is that Dorsey splits his time as CEO of Twitter and CEO as Square Inc, his mobile payments app from which he derives the majority of his reported $5billion fortune.
Singer believes his undivided attention should be devoted to Twitter, especially given the looming 2020 election and other global news events which the company has a role in spreading information about.
He is also a staunch Trump supporter. While his views on Dorsey's politics are not known, many Republican pundits or activists have criticized the Twitter CEO for banning political ads or even banning them when they share conservative content on the site.
Twitter shares were up by seven percent in pre-market trading on Tuesday. They opened at $35.95 on Tuesday morning, their highest for days
After news of the attempted coup spread over the weekend, Twitter shares rose by seven percent to $35.75, three percent more than they had all year. It boosted the company's overall value by $1billion to slightly over $28billion.
They opened on Tuesday morning at $35.95 - even higher.
But while the market responded keenly to the news, Twitter employees revolted against it.
They started tweeting their support of Dorsey with the hashtag '#WeBackJack' and even Elon Musk, the eccentric founder of Tesla whose own presence on Twitter has caused problems for his company, shared his support.
'Just want say that I support @jack as Twitter CEO. He has a good [heart],' Musk tweeted, using a red love heart emoji.
Dorsey is yet to make a comment on the reports of Singer's takeover.
Twitter executives met with Singer and his