Activist investor Elliott Management reportedly increased its stake in Twitter by more than $200 million after stocks of the social media company declined due to advertiser pullback.
Bloomberg reported the investor company moved to boost its assets ownership in the platform after a considerable sell-off of the latter’s shares initiated on Friday (30 April).
The news agency blamed the company’s share price drop on slow ad sales in Q1 and warnings of sluggish user growth for the current quarter.
Some advertisers also reportedly stepped back from spending budgets for promoting content on the platform following controversy around former President Donald Trump’s ban from the platform.
Elliott Management reportedly poured new investment as it bets on Twitter’s capabilities to reach a goal of doubling its annual revenue by 2023.
The investor held a 4 per cent stake, equivalent to $1 billion, in Twitter in March 2020, placing it as one of its top-ten shareholders.
It then made efforts to replace Twitter CEO Jack Dorsey as part of a larger restructure goal, but shortly after it sealed a deal keeping Dorsey atop of the platform’s leadership.
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