Elliott Takes Action Again... "Acquired Over 9% Stake in Pinterest"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Elliott Management, a well-known activist fund on Wall Street, has taken action by purchasing more than 9% of the shares of Pinterest, a U.S. social networking service (SNS) currently experiencing turmoil due to deteriorating performance and a CEO change.

On the 14th (local time), the Wall Street Journal (WSJ), citing multiple sources, reported that Elliott had purchased more than 9% of Pinterest's shares over several months, some of which consist of common stock. Elliott is said to have been in contact with Pinterest over the past few weeks.

This news comes as Pinterest, which showed growth last year with annual revenue exceeding $2 billion (approximately 2.64 trillion KRW) due to COVID-19, is now facing significant performance deterioration and turmoil, including a decline in monthly active users this year. Changes in Apple's privacy policies have made targeted advertising difficult, and concerns over an economic recession have further impacted the advertising business.

Additionally, last month, Pinterest CEO Ben Silbermann resigned. Bill Ready, who previously led the commerce division at Google, was appointed as the new CEO. The founder and former CEO Silbermann currently holds 37% of Pinterest's shares, so there is speculation that he may resist any demands for change from Elliott.

Currently, Pinterest's corporate value is around $12 billion. Its stock price has fallen nearly 50% since the beginning of this year, a larger drop compared to the Nasdaq Composite Index, which declined by 30% during the same period.

Elliott is known as an activist fund that actively intervenes in the management of companies in which it holds shares. Last year, Twitter founder Jack Dorsey stepped down as CEO following pressure from Elliott. After purchasing $1 billion worth of Twitter shares in 2020, Elliott secured an agreement allowing it to appoint two directors to Twitter's eight-member board. In 2019, Elliott and another activist investor, Starboard Value LP, pressured e-commerce company eBay, leading to Elliott's CEO, Jeffrey C. Smith, joining eBay's board and ousting CEO Devin Wenig six months later.

This content was produced with the assistance of AI translation services.