Activist investor Elliott Management has a significant stake in Dropbox Inc. and holds private conversations with the file-sharing service provider for some time, said one person familiar with the matter.
The hedge fund has a stake of more than 10%, valued at more than $ 800 million, said the person, who declined to disclose the exact size of the investment.
Dropbox, which was co-founded by Drew Houston, who is also the company’s CEO, is valued at approximately $ 11 billion. The company, which allows users to store documents, videos and photos online, listed its shares in March 2018 at $ 21 per share. On Wednesday, Dropbox was trading at $ 28.11, after jumping up to 7% on the news that Elliott had a stake and held discussions with management.
A Dropbox representative did not immediately respond to a request for comment.
The Wall Street Journal first reported participation.
Elliott Management has previously worked with companies run by founders, including Twitter and SoftBank Group. The investment fund invests approximately $ 40 billion and currently has stakes in Duke Energy, where it has urged the company to consider splitting into three companies, and drug maker GlaxoSmithKline.