Activist investor Paul Singer, the billionaire founder of the fund Elliott Management which has a ‘sizable’ stake in Twitter, is seeking to replace Jack Dorsey as CEO, the media reported on Friday.
According to a CNBC report citing sources, Elliott is pushing for Dorsey’s removal because his attention is split between running both Twitter and financial services and mobile payment company Square along with Dorsey’s plan to move to Africa for six months this year.
Elliott has nominated four directors to Twitter’s board and seeks to make other changes at the company.
Twitter declined to comment and Elliott Management didn’t immediately respond.
Twitter stock were up more than 7 per cent in after-hours trading after the news broke.
Dorsey is the only CEO of two companies with market valuation of more than $5 billion.
He has said he would move to Africa for three-six months to “define the future”.
Dorsey last year announced that his $32.7 billion worth company Square would hire three to four developers and a designer to work on the open-source Bitcoin ecosystem.
Exact details of the Square Crypto project have been closely guarded and remain unclear as of now.
On the other hand, Twitter is also considering a feature that would allow users to tip one another in Bitcoins.
It is not yet clear whether the Twitter tipping feature would integrate with Square. Dorsey has made no secret of his love of Bitcoin over the years.
He is an advocate of digital currency bitcoin but he also says it is “not functional as a currency”.
Singer questions Dorsey’s focus
The $40.2 billion hedge fund managed by Singer took a major stake in the social media giant recently and has already nominated four replacement directors to Twitter’s board according to reports.
Dorsey has previously faced criticism for his role as CEO of two publicly listed companies; Twitter and Square, both of which have market valuations of over $5 billion. Singer is also concerned about Dorsey’s plan to work up to six months a year in Africa.
Square and Twitter both pro-Bitcoin
Dorsey is a long time supporter of Bitcoin and was instrumental in implementing an easy Bitcoin onramp into his company, Square’s, Cash App. As Cointelegraph reported this week, a full half of Cash App’s revenue now comes from Bitcoin-related revenue.
Square has also invested in Square Crypto, a team funded by Square, tasked with improving the overall Bitcoin ecosystem. Square Crypto made a number of hires in 2019, including its first hire, Steve Lee, who clarified his position in a tweet recently:
“I don’t work for Square, I work for Bitcoin. Square pays me so I can spend all my time and energy working on Bitcoin.”