Twitter, Elliott In Deal That Keeps Jack Dorsey As CEO

(RTTNews) - Twitter Inc. (TWTR) and activist hedge fund Elliott Management Corp. have reached a peace deal that will allow Chief Executive Jack Dorsey to continue as CEO.

Twitter will appoint three new directors to its board and create a committee to review its leadership and governance, as part of an agreement with activist investor Elliott Management and private equity firm Silver Lake.

Twitter will be appointing Egon Durban and Jesse Cohn as directors, while will search for a third director with technology expertise.

Silver Lake will also make a $1 billion investment in the social media company, which Twitter plans to use to fund part of its first ever share buyback, set at $2 billion.

Jack Dorsey, co-founder and CEO, said, "Twitter serves the public conversation, and our purpose has never been more important. Silver Lake's investment in Twitter is a strong vote of confidence in our work and our path forward. They are one of the most respected voices in technology and finance and we are fortunate to have them as our new partner and as a member of our Board. We welcome the support of Egon and Jesse, and look forward to their positive contributions as we continue to build a service that delivers for customers, and drives value for stakeholders."

Last week, Elliott Management bought a sizable stake in Twitter and pushed for for several changes at the company, including the replacement of Dorsey. Elliott is reportedly concerned that Dorsey has not focused enough on Twitter as he is also chief executive officer of payments company Square, Inc (SQ).