Twitter Announces Partnership with Silver Lake, Gets 1 Billion Dollars in Investment

Twitter and Silver Lake team up, as the latter has invested $1 billion into the company, additionally achieving a truce with investor Elliott Management, who appeared to be fishing for ways to oust Jack Dorsey as the CEO of Twitter. 

$1 Billion For Twitter, New Board Members 

On Monday, Twitter announced a new $1 billion investment from Silver Lake, a very prolific investor in the tech industry. The company also entered an agreement with Elliott Management, which owns around 4% of the company. The investment money plus some cash on hand will be used for a share repurchase program, valued at around $2 billion. Additionally, one person from each investment firm will be joining Twitter’s board of directors – Silver Lake’s Egon Durban and Elliott’s Jesse Cohn, adding that a third is currently being searched for. 

A mDAU( Twitter metric for “monetizable” daily active users) plan is also part of Twitter’s commitments, as the company is looking to grow its mDAU at 20% or more.

The news has likely put an end to suspicions that Jack Dorsey might be getting ousted as Twitter’s CEO. While the company’s stock is not looking too spectacular at the moment, as it is currently down close to 6% in pre-market trading, this is likely to change after the market stabilizes following a rough week of volatility. 

Twitter also clearly stated that the agreement between the three doesn’t mean that the new directors will influence any policies, rules, or enforcement decisions; in fact, it’s the complete opposite – they will be unable to. The two new directors, however, expressed their joy and interest in the company, both saying they look forward to working with both Jack and the Board to “realize Twitter’s full potential.”