Activist investor Elliott Administration owns a big stake in Dropbox and has been holding non-public discussions with the file-sharing service supplier for a while, a supply acquainted with the matter stated on Wednesday.
The hedge fund owns a stake of greater than 10 %, which is valued at greater than $800 million, the particular person stated, declining to disclose the precise dimension of the funding.
Dropbox, which was co-founded by Drew Houston who’s presently the corporate’s chief govt officer, is valued at roughly $11 billion. The corporate, which permits customers to retailer paperwork, movies and photographs on-line, listed its shares in March 2018 at $21 a share.
A consultant for Dropbox didn’t instantly reply to a request for remark.
On Wednesday, Dropbox was buying and selling at $28.11, having jumped as a lot as 7 % on information that Elliott has a stake and is holding discussions with administration.
The Wall Road Journal first reported the stake.
Elliott has previously worked with companies that were being led by founders, together with Twitter and SoftBank Group.
The hedge fund invests roughly $40 billion and presently owns stakes in Duke Vitality, the place it has urged the corporate to contemplate splitting into three corporations, and drugmaker GlaxoSmithKline.