Elon Musk backs Twitter CEO Jack Dorsey as activist shareholder seeks replacement

Space X CEO Elon Musk has publically supported Twitter CEO, Jack Dorsey on March 3 as tensions cloud over latter's position with activist shareholder seeking a replacement. This came just days after media reports stated that activist investor Elliott Management Corp has pushed for Dorsey's removal from the role, but Tesla co-founder said that he supports him and that Dorsey has a “good heart”.

Elliott founded by billionaire Paul Singer has reportedly taken a stake of more than $1 billion in Twitter and nominated four directors. The  American investment management firm's main concern is the need for Twitter to have a full-time CEO rather than someone like Dorsey who splits his time between the social media company and mobile-payments platform, Square Inc.

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Elliot roots for undivided attention

According to reports, Elliott thinks that Twitter requires unflagging attention of its CEO in a year where major news events are colliding. The shareholder also wants Twitter's CEO to oversee the role that the company plays while disseminating information especially when new users and advertisers are congregating the microblogging website. Moreover, people familiar with the matter have also reportedly revealed that when the Twitter executives met Elliott for the first time, last week, Dorsey chose to skip it. 

However, even though it still remains unclear how big a stake the New York-based firm has in Twitter or who it wants to replace Dorsey. However, sources of international media outlets have also revealed that Eliott was open to the possibility of Dorsey to become a full-time Twitter CEO as long as he is willing to give up his other jobs as CEO of the payments technology company. But, Dorsey is reportedly unlikely to do that. Since Twitter only issues common stock unlike Facebook and Google, it gives the company's shareholders equal voting rights. Dorsey even though runs the company but he owns only a small percentage of Twitter's shares.

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Musk is one of Twitter's most frequent high-profile users is reportedly a big fan of the service. Moreover, when Dorsey's Twitter hosted a company-wide international retreat earlier this year in Texas, Tesla CEO had joined through teleconference to offer his suggestions for how to make the product even better. That time, Musk had advised that Twitter should do more in order to label the bots.

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(With agency inputs)