Activist investor Elliott Management owns a large stake in Dropbox and has been holding private discussions with the file-sharing service provider for some time, a source familiar with the matter said on Wednesday.
The hedge fund owns a stake of more than 10 percent, which is valued at more than $800 million, the person said, declining to reveal the exact size of the investment.
Dropbox, which was co-founded by Drew Houston who is currently the company’s chief executive officer, is valued at roughly $11 billion. The company, which allows users to store documents, videos and photos online, listed its shares in March 2018 at $21 a share.
A representative for Dropbox did not immediately respond to a request for comment.
On Wednesday, Dropbox was trading at $28.11, having jumped as much as 7 percent on news that Elliott has a stake and is holding discussions with management.
The Wall Street Journal first reported the stake.
It was celebratory for Dropbox in March 2018 when its CEO Drew Houston and co-founder Arash Ferdowsi (center) rang the opening bell at the Nasdaq in honor of the company’s IPO. News of Paul Singer’s Elliott Management owning a large stake in the company sent shares of the stock soaring Wednesday.Getty