Twitter Inc. (NYSE:TWTR) has announced a partnership with Silver Lake that will result in a $1 billion investment in Twitter and a cooperation agreement with Elliot Management Corporation.
Twitter to receive investment to fund a share repurchase program
Elliot Management is an investment company with affiliated funds that own around4% of Twitter, and its board has approved a $2 billion stock repurchase program. Twitter will use the funds from Silver Lake plus cash on hand in funding a $2 billion stock repurchase program that they plan to execute over time.
As part of the agreement, Silver lake’s managing partner and Co-CEO Egon Durban and Elliot partner Jesse Cohn will now join Twitter’s Board of Directors. Similarly, Twitter will continue with the process of identifying another independent candidate by focusing on candidates reflecting the diversity of the company and also with deep tech and AI knowledge.
The company’s lead independent director Patrick Pichette indicated that the company has undergone significant transformation in the last few years. He added that they were proud of the accomplishments they have achieved under the leadership of Jack Dorsey. Pichette stated that as a Board they are always reviewing how the company is run, and thus they are creating a temporary committee to help in the evaluation of its leadership structure.
Twitter proud to have partnered with Silver Lake and Elliot
Dorsey indicated that Twitter is more focused on delivering the best in providing a platform for public conversations. He added that the investment of Silver Lake is a massive vote of confidence in the work the company is doing and the way forward. Further, he indicated that Silver Lake is one of the best firms in tech and finance, and Twitter is fortunate to partner with them and have a member sitting on its Board.
Twitter has also provided its vision for two metrics that are critical measures for its growth. Its ambition is to grow mDAU at more than 20% in 2020 and beyond. It is equally looking to enhance revenue growth on a YoY basis and cut itself a niche in the digital advertising space.
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