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Twitter's decision to replace CEO Jack Dorsey with Parag Agrawal was finalized more than a year ago, cementing activist investor Elliott Management's plan for the company's future

Twitter's decision to replace CEO Jack Dorsey with Parag Agrawal was finalized more than a year ago, cementing activist investor Elliott Management's plan for the company's future
Parag Agrawal is Twitter's new CEO.Twitter


Activist investor Elliott Management got its way with Twitter, with Jack Dorsey resigning as CEO.




The success of the campaign will now be measured by new CEO Parag Agrawal's decisions.




An outside executive, Salesforce co-CEO Bret Taylor, was also named chair of Twitter's board.


Elliott Management set out in March 2020 to oust Twitter cofounder and CEO Jack Dorsey, wielding a major stake in the social-media company and outsize influence as one of the top activist investors. Twenty months later, the $48 billion hedge fund got what it wanted. Dorsey stepped down as CEO on Monday.Now, the success of its campaign relies on new CEO Parag Agrawal's ability to hit the growth, innovation, and revenue goals the fund has pushed since announcing its investment in Twitter. Elliott holds 10 million shares, so it has plenty to lose if Agrawal, a company insider and Dorsey mentee, proves too much like his former boss and friend.Dorsey was "paralyzed by choice," a person with knowledge of the matter said.A Agrawal, previously Twitter's CTO, needs to be much different in that regard and the board believes he is, this person said. Supporting that belief, Agrawal announced a big reorganization late Friday to increase accountability, speed, and operational efficiency.Still, the new CEO's relative obscurity has Wall Street concerned about whether he can bring about the change that Twitter needs, or Elliott demands. The company said at the start of this year that it intended to have over 300 million users and more than $7.5 billion in annual revenue by the end of 2023. Its third-quarter results showed the company had a long way to go.
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