Twilio, a cloud communications company, has appointed a partner at Sachem Head Capital Management to its board in response to pressure from activist investment firms. The addition of Andy Stafman brings the board size to 10 people and eliminates the possibility of a boardroom challenge in 2024.
Sachem Head, which has been investing in Twilio on and off for years, recently increased its stake in the company. The exact size of Sachem Head’s stake is unknown, but the firm has been vocal about pushing Twilio to explore strategic alternatives.
Twilio, founded in 2008 and publicly traded since 2015, provides products that help developers build communication features like phone calls and text messages. The company has faced pressure from activist investors like Legion Partners and Anson Funds to consider divesting parts of its business or selling the entire company.
Despite these challenges, Twilio has made changes to its leadership and operations, including promoting a new CEO and expanding its stock buyback program. The company’s stock price has fallen in recent months, reflecting broader market trends and the impact of the COVID-19 pandemic.
Sachem Head, with $3.4 billion in assets under management, has a history of making strategic investments in software companies. The firm’s involvement in Twilio’s board signals a potential shift in the company’s direction as it navigates pressure from investors.
Overall, Twilio’s recent board appointment and ongoing discussions with activist investors highlight the company’s efforts to adapt to changing market conditions and investor demands.