Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Dropbox Jumps On Report Elliott Has Taken Over 10% In Cloud-Driven Firm  

Published 06/02/2021, 12:57 PM
Updated 06/02/2021, 01:00 PM
© Reuters.

© Reuters.

By Dhirendra Tripathi

Investing – Dropbox (NASDAQ:DBX) shares rose more than 5% Wednesday after a report in The Wall Street Journal said Elliott Management has taken more than 10% stake in the cloud computing company, worth over $100 million.

Elliott is an activist hedge fund that is known for either changing managements or effecting major changes in their strategies for a possible turnaround.

According to WSJ, Elliott has told Dropbox it is the company’s largest shareholder after Chief Executive Officer Drew Houston.

Dropbox, a cloud-computing company with a market value of over $11 billion, went public in March 2018 and has been trading below its IPO price for most of that time. Its modest valuation compared with those of other cloud companies such as Salesforce.com and ServiceNow (NYSE:NOW) has made it a subject of persistent takeover speculation.

The market talk intensified after Salesforce (NYSE:CRM) agreed to buy Slack Technologies (NYSE:WORK) last year for $27.7 billion. In a deal announced Tuesday, Cloudera (NYSE:CLDR) agreed to sell itself to a pair of private-equity firms, namely Clayton, Dubilier & Rice and KKR (NYSE:KKR).

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.