Shulou(Shulou.com)11/24 Report--

On the morning of August 16, Beijing time, it was reported that Elliott Asset Management (Elliott Management), a US private equity hedge fund, emptied all its holdings in Twitter in the second quarter.

At that time, Tesla CEO Elon Musk (Elon Musk) announced a total of $44 billion acquisition plans, Twitter shares soared, Elliott walked out decisively, locking in profits.

According to a regulatory report filed by Elliott, Elliott no longer holds any shares in Twitter by the end of the second quarter. By contrast, at the end of the first quarter, Elliott held 10,000 shares of Twitter1000, with a market value of $387 million.

On April 14, Musk offered to buy Twitter for $54.20 a share, and two weeks later, Twitter's board approved the deal.

Elliott has no comment on when it sold its stake in Twitter.

Twitter shares rose to $51.70 in late April and plummeted to $37.39 on June 30, mainly because Mr Musk abandoned the deal. Twitter shares closed at $44.50 on Monday.

Elliott, which manages $56 billion in assets, was founded by Paul Singer, a famous American billionaire. Elliott, a shareholder in Twitter, has not commented on Musk's acquisition plan. Elliott played a role in reorienting Twitter's leadership and direction before emptying all its shares.

In early 2020, Elliott began buying shares in Twitter and partnered with Silver Lake, California, a well-known private equity firm, to get Twitter to issue $1 billion in convertible bonds to buy back the company's shares.

Later, Elliott partner Jesse Cohn (who is in charge of the company's technology investments) and Silver Lake co-CEO Egon Durban were added to Twitter's board of directors.

As part of the investment plan, Elliott and Silver Lake developed reform plans to let Twitter co-founder and then CEO Jack Dorsey (Jack Dorsey) leave the company and hand over management power.

In June 2021, Cohen resigned from the Twitter board, but Duban remained on the board. At the time, Elliott still had a large stake in Twitter, and the fund supported Egva, an Twitter executive, to succeed Mr Dorsey as CEO at the end of last year.

In July, Musk announced that he would abandon his plan to buy Twitter, criticizing him for providing false and misleading information about fake accounts and robot accounts. Twitter then took Musk to court to enforce the acquisition agreement signed between the two sides. The lawsuit will be tried in a court in Delaware in October.

Elliott's regulatory report also shows that in addition to its shares, the company has reduced all other Twitter-related financial assets to avoid being implicated.

At the end of the first quarter, Elliott held call options on 2 million Twitter shares, in addition to 5000 million shares linked to convertible bonds. The latest report shows that at the end of the second quarter, Elliott had emptied all call options and continued to hold 4000 million shares linked to convertible bonds.

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