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Twilio (NYSE:TWLO) rose 4.6% in after hours trading amid a report that activist investor Legion Partners has met with the company and is pushing the communications tech company to make changes.
Legion Partners has met several times with the board and management and is urging the company to make board changes and evaluate divestitures, according to a report in The Information on Tuesday, which cited people familiar.
The discussions come at important time for Twilio (TWLO) as the use of supervoting shares is set to expire in less than a month, according to the report. Other activists have considered targeting Twilio in the past, though the supervoting share issue was viewed as an obstacle.
Legion Partners indicated in its latest 13F filing from end of March that it owned ~600K shares of Twilio (TWLO). TheDeal.com indicated in March that Legion disclosed a stake in Twilio.
Twilio (TWLO) announced in February it planned to cut about17% of staff and close offices.