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An Activist Hedge Fund Wants Jack Dorsey Out as Twitter CEO. Could That Change the Site?

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  • Last week, it was reported that conservative activist investor Elliott Management had purchased over $1 billion in Twitter shares, or about 4% of the company.
  • Now, Elliott Management wants to replace Twitter’s co-founder, Jack Dorsey, as CEO. 
  • This is largely viewed as an attempt to boost Twitter’s stock, which has been underperforming since Dorsey reclaimed his CEO position in 2015.
  • According to Fox News, a Dorsey ousting by Elliott Management could “raise the prospect that some of the changes to Twitter could make the platform a friendlier place for pro-Trump users.”

Hedge Fund Plans to Push Dorsey Out of Twitter

Twitter employees took to the platform Monday night in support of CEO Jack Dorsey after it was reported that an activist investment fund was trying to unseat him.

Last week, the fund known as Elliott Management announced it had bought roughly $1 billion in Twitter stock. According to Business Insider, that’s nearly 5% of the company and also enough to allow it to pressure Dorsey out of his CEO role. 

Elliot Management wants to oust Dorsey for a number of reasons, but perhaps the most significant reason is that Twitter is underperforming. Dorsey previously served as CEO of Twitter until being fired in 2008. He then returned in 2015. Since then, Twitter’s shares have fallen by 6.2%. Facebook, by contrast, has gained more than 121% in that same timeframe.

In November, Dorsey also announced that he’s preparing to move to Africa for 3-6 months this year.

That’s on top of Dorsey already splitting his time between Twitter and Square, Inc., where Dorsey is also CEO.

Elliott Management’s main argument here will be that a full-time CEO would be able to devote more time to the company to help raise its stock value and grow the company. 

This, however, isn’t the first time someone has announced a plan to oust Dorsey. In fact, such a move seemed bound to happen because unlike Facebook CEO Mark Zuckerberg and Snap Inc. CEO Evan Spiegel, Dorsey does not have voting control of Twitter. 

In December, New York University marketing professor Scott Galloway penned a letter calling for Dorsey’s removal.

“As of 12/6 I am the direct and beneficial owner of approximately 334,000 shares in Twitter,” Galloway said. “To be clear, my primary objective is the replacement of CEO Jack Dorsey.”

Weak governance, a part-time CEO, relocation to Africa, damage to the commonwealth, and poor returns,” he added. “Stakeholders deserve a board and CEO that command the opportunity Twitter occupies.”

Could A Dorsey Oust Make Twitter More “Trump Friendly?”

The reasons why Elliott Management is trying to push Dorsey may not stop there. 

The hedge fund is owned by Paul Singer, a conservative billionaire mega-donor. In 2016, Singer donated $24 million to Republican and right-leaning groups. 

It is possible, as Fox News points out, that Elliot Management’s increased presence within Twitter could, at least in part, ease conservative’s concerns that Twitter has a left-leaning bias. 

Elliott Management’s stake “[raises] the prospect that some of the changes to Twitter could make the platform a friendlier place for pro-Trump users. ”

Last year, California GOP Representative Devin Nunes filed a $250 million lawsuit against Twitter and several users. In that lawsuit, he accused the platform of “shadow-banning conservatives” and hiding their posts. 

#WeBackJack Trends on Twitter

Following all of this, many Twitter employees supporting Dorsey in his role as CEO posted stories of their interactions with Dorsey using the hashtag #WeBackJack. Later Monday night, that tag began to trend. 

“I’ve worked [for] many major corporations,” one user said. “Never did the CEO take 3 minutes to talk with me 1:1. Jack did (more than 3 mins might I add) & he didn’t treat me like someone below him. Ppl speak highly of him in rooms he’s not in. He’s not pretentious or egocentric. So yea #WeBackJack”

Telsa CEO Elon Musk also offered his support for Dorsey on Twitter Monday night, saying Dorsey “has a good [heart].”

Elliott Management Nominates Four Directors

While Elliott Management has not yet ousted Dorsey, it has nominated four people to Twitter’s board of directors.

Notably, there’s only going to be three seats available at this year’s annual meeting, but Elliott Management reportedly wants to ensure that it nominates enough people to fill all three seats and any vacancies that may unexpectedly arise. 

Elliot Management’s move to remove Dorsey comes in the face of several major events including the worsening situation with the coronavirus, U.S. presidential elections, and the upcoming Olympic Games in Tokyo. 

Those events will likely attract more users to the site and could, in turn, drive more advertisers, thus increasing the company’s stock value.

Twitter, however, has fallen behind other social media platforms despite its widespread use. Reportedly, it has decided to focus on its core services even though other platforms have added features such as filters and stories.

It is unknown if a Dorsey ousting could change that policy as Twitter’s board of directors tries to increase its stock value.

See what others are saying: (Bloomberg) (Business Insider) (Fox News)

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Jake Paul Says He “Can’t Get Cancelled” as a Boxer

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The controversial YouTuber opened up about what it has been like to go from online fame to professional boxing.


The New Yorker Profiles Jake Paul

YouTuber and boxer Jake Paul talked about his career switch, reputation, and cancel culture in a profile published Monday in The New Yorker. 

While Paul rose to fame as the Internet’s troublemaker, he now spends most of his time in the ring. He told the outlet that one difference between YouTube and boxing is that his often controversial reputation lends better to his new career. 

“One thing that is great about being a fighter is, like, you can’t get cancelled,” Paul said. The profile noted that the sport often rewards and even encourages some degree of bad behavior.

“I’m not a saint,” Paul later continued. “I’m also not a bad guy, but I can very easily play the role.”

Paul also said the other difference between his time online and his time in boxing is the level of work. While he says he trains hard, he confessed that there was something more challenging about making regular YouTube content. 

“Being an influencer was almost harder than being a boxer,” he told The New Yorker. “You wake up in the morning and you’re, like, Damn, I have to create fifteen minutes of amazing content, and I have twelve hours of sunlight.”

Jake Paul Vs. Tommy Fury

The New Yorker profile came just after it was announced over the weekend Paul will be fighting boxer Tommy Fury in an 8-round cruiserweight fight on Showtime in December. 

“It’s time to kiss ur last name and ur family’s boxing legacy goodbye,” Paul tweeted. “DEC 18th I’m changing this wankers name to Tommy Fumbles and celebrating with Tom Brady.”

Both Paul and Fury are undefeated, according to ESPN. Like Paul, Fury has found fame outside of the sport. He has become a reality TV star in the U.K. after appearing on the hit show “Love Island.”

See what others are saying: (The New Yorker) (Dexerto) (ESPN)

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Hackers Hit Twitch Again, This Time Replacing Backgrounds With Image of Jeff Bezos

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The hack appears to be a form of trolling, though it’s possible that the infiltrators were able to uncover a security flaw while reviewing Twitch’s newly-leaked source code.


Bezos Prank

Hackers targeted Twitch for a second time this week, but rather than leaking sensitive information, the infiltrators chose to deface the platform on Friday by swapping multiple background images with a photo of former Amazon CEO Jeff Bezos. 

According to those who saw the replaced images firsthand, the hack appears to have mostly — and possibly only — affected game directory headers. Though the incident appears to be nothing more than a surface-level prank, as Amazon owns Twitch, it could potentially signal greater security flaws. 

For example, it’s possible the hackers could have used leaked internal security data from earlier this week to discover a network vulnerability and sneak into the platform. 

The latest jab at the platforms came after Twitch assured its users it has seen “no indication” that their login credentials were stolen during the first hack. Still, concerns have remained regarding the potential for others to now spot cracks in Twitch’s security systems.

It’s also possible the Bezos hack resulted from what’s known as “cache poisoning,” which, in this case, would refer to a more limited form of hacking that allowed the infiltrators to manipulate similar images all at once. If true, the hackers likely would not have been able to access Twitch’s back end. 

The photo changes only lasted several hours before being returned to their previous conditions. 

First Twitch Hack 

Despite suspicions and concerns, it’s unclear whether the Bezos hack is related to the major leak of Twitch’s internal data that was posted to 4chan on Wednesday.

That leak exposed Twitch’s full source code — including its security tools — as well as data on how much Twitch has individually paid every single streamer on the platform since August 2019. 

It also revealed Amazon’s at least partially developed plans for a cloud-based gaming library, codenamed Vapor, which would directly compete with the massively popular library known as Steam.

Even though Twitch has said its login credentials appear to be secure, it announced Thursday that it has reset all stream keys “out of an abundance of caution.” Users are still being urged to change their passwords and update or implement two-factor authentication if they haven’t already. 

See what others are saying: (The Verge) (Forbes) (CNET)

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Twitch Blames Server Configuration Error for Hack, Says There’s No Indication That Login Info Leaked

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The platform also said full credit card numbers were not reaped by hackers, as that data is stored externally. 


Login and Credit Card Info Secure

Twitch released a security update late Wednesday claiming it had seen “no indication” that users’ login credentials were stolen by hackers who leaked the entire platform’s source code earlier in the day.

“Full credit card numbers are not stored by Twitch, so full credit card numbers were not exposed,” the company added in its announcement.

The leaked data, uploaded to 4chan, includes code related to the platform’s security tools, as well as exact totals of how much it has individually paid every single streamer on the platform since August 2019. 

Early Thursday, Twitch also announced that it has now reset all stream keys “out of an abundance of caution.” Streamers looking for their new keys can visit a dashboard set up by the platform, though users may need to manually update their software with the new key before being able to stream again depending on what kind of software they use.

As far as what led to the hackers being able to steal the data, Twitch blamed an error in a “server configuration change that was subsequently accessed by a malicious third party,” confirming that the leak was not the work of a current employee who used internal tools. 

Will Users Go to Other Streaming Platforms?

While no major creators have said they are leaving Twitch for a different streaming platform because of the hack, many small users have either announced their intention to leave Twitch or have said they are considering such a move. 

It’s unclear if the leak, coupled with other ongoing Twitch controversies, will ultimately lead to a significant user exodus, but there’s little doubt that other platforms are ready and willing to leverage this hack in the hopes of attracting new users. 

At least one big-name streamer has already done as much, even if largely only presenting the idea as a playful jab rather than with serious intention. 

“Pretty crazy day today,” YouTube’s Valkyrae said on a stream Wednesday while referencing a tweet she wrote earlier the day.

“YouTube is looking to sign more streamers,” that tweet reads. 

I mean, they are! … No shade to Twitch… Ah! Well…” Valkyrae said on stream before interrupting herself to note that she was not being paid by YouTube to make her comments. 

See what others are saying: (Engadget) (BBC) (Gamerant)

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