A new investor wants to dismiss the head of Twitter. The shares responded with a rise

Twitter Shares on Monday rose more than 7% amid reports that one of the investors insisted on the replacement of CEO Jack Dorsey. The rally added about $2 billion to the market value of Twitter.

Investment Fund Elliott Management acquired a stake in Twitter and is now planning to achieve a change in the company, including the departure of the head of Twitter Jack Dorsey as CEO of the company, previously reported Bloomberg citing its own sources. The amount of shares Elliott Management has not been disclosed, but the publication calls it “significant”.

Elliott Management Founder and billionaire investor Paul singer (Paul Singer) seeks to remove Dorsey from the post, because Dorsey distributed across Twitter and the payment company Square, which has the crypto unit Crypto Square. In addition, the new investor is dissatisfied with the plans Dorsey six months to live and work in Africa.

Dorsey was often criticized for excessive concentration on the main product and the insufficient pace of innovation. According to Bloomberg, Elliot Management wants to include three representatives in the Board of Directors of Twitter, which consists of eight people.

Elliott Management has long advocated a change of leadership in companies such as AT&T and EBay. The firm also announced a share of $2.5 billion in SoftBank last month.

Michael Levin, an analyst at Pivotal Research Group, wrote in a note Monday that he sees “high” chances of success, Elliott Management attempts to shift Dorsey and get four seats on the Board of Directors, according to Bloomberg. Levin said he would like to see “more power on the operating front,” hiring a good chief operating officer at Twitter.

the Expert believes that the presence of the CEO and operations Director for Twitter, it is essential to combine and Jack Dorsey not very good.

Twitter was potential targets for activist investors for many years. The company has only one class of shares, which means co-founder Jack Dorsey has no control, such as mark Zuckerberg or the founders of Snap-Evan Spiegel. Twitter shareholders have the equal right to vote, which Dorsey owns nearly 2% of the company proved vulnerable to investors.

not to mention that investors are dissatisfied with the drop of Twitter shares by 20% in October 2019. Then the company published the financial report according to which profit and revenue were significantly below forecasts. Twitter explained that the revenue was affected by failures in the system of targeting ads. The stock price of the social network against failure of the report fell by 20% to $31,45 apiece according to the new York stock exchange.

Since then, Dorsey has returned as CEO in July of 2015, the company’s shares fell 6.2%, while shares of Facebook during this time grew by over 121%.