By Yasin Ebrahim
Pinterest (NYSE:PINS) rallied in afterhours Thursday as activist investment firm Elliott Management reportedly took a 9% stake in the social-media company to become the largest investor in the social media platform.
Pinterest (NYSE:PINS) jumped 17% following the report.
Elliott has been in talks with Pinterest over the past several weeks, the Wall Street Journal reported, citing unnamed sources. Elliott hasn’t disclosed its plans for Pinterest, but the company is in need of a turnaround amid struggles to ramp-up engagements on its platform.
The report said, however, that Ben Silbermann, one of three Pinterest co-founders, who has about a 37% voting stake in the company could curb Elliott’s ability to effect change.