According to a report allegedly made by Bloomberg, Elliot Management’s founder and billionaire, Paul Singer, plans to out throw Jack Dorsey as CEO of Twitter. The fund management based in New York plans on making changes at the company and has nominated directors to Twitter’s board. Bloomberg said that Paul Singer had bought a considerable stake in Twitter. However, there is no exact amount mentioned making it unclear.
Singer’s inclination to the change on the social media platform comes with the Summer Olympics, U.S. election and other primary events. This was made precisely to attract more advertisers and users of the said social media company. Although the competition is sky-rocketing on social media, Twitter has made little to no innovative development. For this reason, Singer is influencing the change to be made but first ousting Dorsey.
Dorsey Out, Elliot In
Only having three seats available on Twitter’s board of directors, Elliot Management Corp. wanted to secure a spot on all three places. Moreover, Elliot Management Corp. keeps a tab on any other vacancies to be filled, Bloomberg said.
Impeding Development of Twitter’s Social Media Platform
Paul Singer is a well-known Republican donor and the founder of activist fund firm Elliot Management Corp. In 2016, Paul opposed the current president’s race for the White house. A year after, Paul Singer has done an unprecedented u-turn to become a supporter of Donald Trump.
The following year, Paul Singer was invited to the White House by Trump. Allegedly, Paul Singer was very much involved with the “Never Trump” propaganda or anti-Trump publicity act. However, according to Trump, those were all in the past and that Paul Singer has given him his support. The unexpected unification of these two powerhouses brings a significant impact on social media.
Donald Trump’s Ideas For Twitter Followers
Donald Trump is known for broadcasting his ideas, concepts and other significant announcements through Twitter. However, Twitter got thrown to the fire due to the reluctance on removing a deceptive video ad from the president’s campaign. In September, Democrat Joe Biden has been the top head-turner due to Twitter’s political ads about him.
After the issue has been made public, Dorsey announced that political advertising using Twitter’s platform would be banned. Dorsey also mentioned that social media platforms provide an uncomprehensible advantage that targets misleading messages on the web.
Banning Political Advertising on Twitter
Last October, Dorsey made a tweet with the concern of banning the use of political advertising on Twitter. He and his team believe that political messages must be earned and not gained the other way around, bought. With this being said, Trump kept on blaming Twitter and other social media platforms, including Facebook and Google fo being biased from a political point of view. What’s more, Trump also mentioned and threatened to make a thorough investigation of these social media platforms.
Furthermore, Trump suggested that these social media platforms tried to rig the election. And, Trump called on Congress to pass a rectification that would rack up a fine under Twitter’s belt for a possibility of engaging in illegal works.
Twitter’s Slow Descent
For years, Twitter has been a prime platform for activist investors. With the lack of diversity on stocks, Dorsey has no means of control voting on Twitter’s accord compared to Mark Zuckerberg’s Facebook Inc. and Evan Spiegel’s Snap. Although the single class stock for Twitter has made Dorsey fall, he still stands as one of the few people who serve as CEO for two massive companies at the same time. Also, Dorsey spearheads Square Inc. And each time Twitter stumbles and incur several complications Dorsey takes the blunt force of criticism. What’s more, Dorsey mentioned that he plans to head to Africa for six months a year.
Although Elliot Management has voiced out their concern on the degrading status of twitter under Dorsey’s governance, other investors are also alarmed by the situation. Last December, a professor at New Your University’s Stern School of Business has penned an open letter to the company’s executive chairman.
Investors Making a Stand Against Twitter’s CEO
Scott Galloway, one of the investors on Twitter’s company, handed out a letter to Omid Kordestani, Twitter’s executive chairman. The letter said, “To be clear, my primary objective is the replacement of CEO Jack Dorsey.” Since last July 2015, Twitter’s shares have fallen 6.2% as compared to the 121% gain on Mark Zuckerberg’s Facebook Inc.
Furthermore, the stock under Twitter’s roof has significantly dropped more than 20% last October. The decline was seen after Twitter delivered the third-quarter results and has shown a low inclination which is far from the Twitter analysts have hoped. The company also mentioned that at that time, the past privacy issues involving specific data would continue to put on pressure on Twitter’s advertising business. For this reason, Twitter blamed that these problems were caused by certain “bugs” which targeted specific ads and personal information.
The Bottom Line: Where Do Twitter Followers Stand, Amidst The Situation?
Twitter has been on the web for ages and has been part of different fields of business. Often used for commercial purposes and advertising means, Twitter has steadily gathered followers. To this day, people want to know where to buy Twitter Followers but it eludes them nonetheless. This made Twitter a big company that houses a diverse community for marketing and business. With the upcoming upheaval on the possible replacement of the current CEO Jack Dorsey, Twitter followers can be subjected to change.
Dethroning Dorsey
Paul Singer’s concern provides possible dethronement of Jack Dorsey as the stock market of Twitter slowly plummets. Although, other boards of directors are not giving way on such a possibility. But the impact of the change that this permits on Twitter’s fanbase is huge. However, the possibility of increasing the share price would provide a considerable leeway for the previous decline.
Moreover, Paul Singer’s concern about Jack Dorsey’s governance on Twitter’s accord puts his shares on the line. Likewise, several investors under Twitter’s helm are giving out their fears on the slowly decreasing share price. Known for a vast history circumventing change in governance at some of the world’s massive companies, Elliot Management and Paul Singer’s outright message brings an effective transition and an increase on Twitter followers soon.