Social network Twitter reached an agreement on Monday with investment company Elliott Management, allowing Jack Dorsey, its boss, and founder, to stay in place when the fund originally wanted to remove him.
Last week, several media outlets reported that the investment group, which recently acquired a $1 billion (4%) stake in Twitter, had appointed four people to the board of directors of the social network to replace its CEO and co-founder.
Elliott Management mainly criticized Dorsey for not focusing enough on his business since he is also the head of another publicly-traded company, Square.
The fund of the American businessman Paul Singer also criticized the will of the boss of Twitter to spend part of the year in Africa, a project which he finally gave up last week by invoking, in a tweet, the new coronavirus epidemic and everything else going on.
According to the agreement detailed in a statement, investment company Silver Lake will inject $1 billion into Twitter. The social network will use this money as well as cash at its disposal to buy up to $2 billion from its own shares.
At the same time, Silver Lake co-CEO Egon Durban and Elliott partner Jesse Cohn will join the Twitter board of directors.
“We are excited to partner with Twitter as an investor and a member of the board,” Mr. Durban said in a statement. “Jack is a visionary leader and a critical force behind Twitter’s ongoing evolution and growth.”
Patrick Pichette, the current member of this body, assured the management of his trust.
“To continue to ensure solid governance, the board of directors will, however, create a special committee that will regularly assess the management structure,” he added.
Meanwhile, Twitter is making its work from home policy mandatory.
The social networking giant requires its 4,900 employees to work from home according to a blog post.
The decision comes as the COVID-19 coronavirus continues to spread across the U.S. and throughout the world.
“We understand that this is an unprecedented step, but these are unprecedented times,” Twitter said in the blog post.