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Dropbox attracts the attention of freedom fighters from Elliott as shares dwindle

Elliott Management has secured more than 10% share in Dropbox, making the host the largest shareholder in cloud storage.

The New York-based hedge fund is in talks with Dropbox and has informed the company that its price is 9.9% higher than Vanguard’s, said a source familiar with the matter.

Elliott declined to comment on how it wants to use its top shares to lead the company.

Dropbox became very popular in the last 10 years as cloud storage solved the problem for consumers and employees who want to access their music or files on multiple devices. They soon faced the challenge of competition, as all major cloud companies began to view storage as part of their expansion projects.

Attempts to address this by adding new apps built on top of cloud storage space are deteriorating and the growth of users and revenue has slowed significantly, Wall Street expects revenue to rise by about 10% this year.

This has left Dropbox on the sidelines as cloud and software companies expand during the epidemic, which led to an increase in the Bessemer cloud index – of which Dropbox and its affiliates – began early last year.

Shares in Dropbox, however, have sold less than the first low price in 2018.

Dropbox uses two groups that give 10 start-ups to each constituency and act as a barrier to investors. But Elliott did not leave companies with strong founders.

The $ 42bn hedge fund last year set a $ 2.5bn price target for SoftBank, in an effort to boost the professionalism of Masayoshi Son, despite having a 25% stake.

Security workers, who are making money from companies and disrupting change, are back in 2020 quietly with many fearing that people could be reprimanded if they pay the companies affected by the epidemic.

Cloud-based companies that have failed to raise funds for home-based work caused by the coronavirus are now in the spotlight.

Starboard Value wants to upgrade to Dropbox Boxbox, where it has 8% and has asked for new directors to join.

Elliott’s episode at Dropbox was first reported by the Wall Street Journal.

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