I've been reading about the last year of twilio w/regard to layoffs and what not. Mostly trying to figure out what teams had layoffs, so down a rabbit hole.
This article [1] says "Anson and Legion [[2 investors]] have pushed Twilio to sell the Data and Applications unit, if not the whole company. Anson and Legion have both amassed individual stakes of around $50 million"
Twilios marketcap is 13.33bn. Why do 2 investment groups that own a collective of $100m twilio have so much power that they can push for layoffs or SELLING the WHOLE company?
They want twilio to sell a group that is 20% of their revenue. 20% of their revenue based on a 2023 $4bn would be around $800m or so. Twilio is an 8k employee company.. Is $50m in stock so high on the food chain that you get critical voting rights? That's nothing to an 8k large company.
Edit: Ok I'm learning about "Activist Investing" now and I'm pretty sure as opposed to that really nice seeming name it's corporate vultures who try to take over the board and push a company to do whatever they're doing with Bed Bath and Beyond and all those.
It was ONE Portfolio Manager who went from Legion to Anson and brought Twilio into their portfolio at both companies, at $50m each.
He launched campaigns at Kohls, BB&B, Twilio, Nutanix and SurveyMonkey at least according to this article.
And for anyone curious about Activist Investing - Moral of the story once you own 5% you get a form that notifies the board you own 5% and they send in a form to the SEC with all their wants/complaints: https://www.forbes.com/sites/emilywashburn/2023/02/03/whats-...
This article [1] says "Anson and Legion [[2 investors]] have pushed Twilio to sell the Data and Applications unit, if not the whole company. Anson and Legion have both amassed individual stakes of around $50 million"
Twilios marketcap is 13.33bn. Why do 2 investment groups that own a collective of $100m twilio have so much power that they can push for layoffs or SELLING the WHOLE company?
They want twilio to sell a group that is 20% of their revenue. 20% of their revenue based on a 2023 $4bn would be around $800m or so. Twilio is an 8k employee company.. Is $50m in stock so high on the food chain that you get critical voting rights? That's nothing to an 8k large company.
Could anyone explain?
1 = https://www.cnbc.com/2023/12/04/twilio-layoffs-company-to-cu...
Edit: Ok I'm learning about "Activist Investing" now and I'm pretty sure as opposed to that really nice seeming name it's corporate vultures who try to take over the board and push a company to do whatever they're doing with Bed Bath and Beyond and all those.
It was ONE Portfolio Manager who went from Legion to Anson and brought Twilio into their portfolio at both companies, at $50m each.
He launched campaigns at Kohls, BB&B, Twilio, Nutanix and SurveyMonkey at least according to this article.
https://www.reuters.com/article/idUSL2N3B82SO/
And for anyone curious about Activist Investing - Moral of the story once you own 5% you get a form that notifies the board you own 5% and they send in a form to the SEC with all their wants/complaints: https://www.forbes.com/sites/emilywashburn/2023/02/03/whats-...