Shares of Twilio Inc (NYSE:TWLO) raced over 8% on Wednesday following reports that activist hedge fund Legion Partners has engaged in multiple meetings with the software company, advocating for divestitures and board changes.
Legion Partners, known for its involvement in the shake-up of Bed, Bath and Beyond, has held at least six meetings in recent months to discuss potential improvements to Twilio's cost structure and explore strategic alternatives, according to a report by The Information.
The timing of these discussions is crucial for the $11.5 billion communications software firm. Twilio's use of supervoting shares, which grants CEO and co-founder Jeff Lawson a voting stake of 21.8% despite owning just 3.7% of the stock, is set to expire in less than a month.
Once the shares merge into a single class, Lawson will lose his significant voting power, potentially exposing the company to greater shareholder pressure.
Twilio is a cloud communications platform company based in San Francisco.
Contact Angela at angela@proactiveinvestors.com
Follow her on Twitter @AHarmantas