2023-12-13 10:57:15 ET
Twilio ( NYSE: TWLO ) briefly ticked down 1% amid a report that the communicastions software company hired Qatalyst Partners to advise it on defense against a group of activist investors.
Qatalyst, the investment bank founded by Frank Quattrone, has been working on the activist situation for months, according to a CNBC report on Wednesday, which cited people familiar with the matter.
While Qatalyst typically helps companies in sales processes, the firm is doing activist defense for Twilio ( TWLO ), according to CNBC.
The report comes after a report late last month that Anson Funds had accumulated a stake and wants the company to sell itself. Anson Funds has a stake of about $50 million and is pushing the company to sell itself or divest its data and applications business , according to a report in The Infomation.
The Anson investor, Sagar Gupta, recently joined Anson from activist firm Legion, which had also been pressuring Twilio ( TWLO ) on the activist front.
Anson wants Twilio to sell its data and applications business and use the proceeds to buy back stock or buy other communications platforms like Sinch or Vonage, according to The Information.
Legion Partners has met several times with the board and management and is urging the company to make board changes and evaluate divestitures, according to a report in The Information in late May.
Twilio ( TWLO ) last Monday announced the elimination of about 5% of its workforce and said it would incur $25-$35M in charges under a restructuring plan aimed at streamlining operations.
More on Twilio
- Twilio: Q3 Was Not Good Enough
- Twilio Inc. (TWLO) UBS Global Technology Conference (Transcript)
- Twilio Has A Growth Problem (Rating Downgrade)
- Twilio to cut 5% workforce under latest plan; sees $25-$35M in charges
- Twilio gains amid report investor Anson pushing for potential sale
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Twilio ticks lower amid report it's using an adviser for activist defense