Dropbox Jumps On Report Elliott Has Taken Over 10% In Cloud-Driven Firm   By Investing.com

By Dhirendra Tripathi

Investing – Dropbox (NASDAQ:DBX) shares rose more than 5% Wednesday after a report in The Wall Street Journal said Elliott Management has taken more than 10% stake in the cloud computing company, worth over $100 million.

Elliott is an activist hedge fund that is known for either changing managements or effecting major changes in their strategies for a possible turnaround.

According to WSJ, Elliott has told Dropbox it is the company’s largest shareholder after Chief Executive Officer Drew Houston.

Dropbox, a cloud-computing company with a market value of over $11 billion, went public in March 2018 and has been trading below its IPO price for most of that time. Its modest valuation compared with those of other cloud companies such as Salesforce.com and ServiceNow (NYSE:NOW) has made it a subject of persistent takeover speculation.

The market talk intensified after Salesforce (NYSE:CRM) agreed to buy Slack Technologies (NYSE:WORK) last year for $27.7 billion. In a deal announced Tuesday, Cloudera (NYSE:CLDR) agreed to sell itself to a pair of private-equity firms, namely Clayton, Dubilier & Rice and KKR (NYSE:KKR).