Activist investor Elliott Management Corp. has taken a big stake in Pinterest Inc., according to people familiar with the matter, as the once-hot social-media company grapples with a decline in users and other challenges.
Elliott has told the company that it is the biggest investor in Pinterest
having built a stake of more than 9% in recent months — partly in common stock, one of the people said. The activist has been in discussions with Pinterest over the past several weeks. It couldn’t be learned what they have been discussing.
Also: Pinterest stock pops 19% on report of activist investor increasing stake
It has been a time of turmoil for Pinterest, which operates a free online platform for sharing images that inspire projects such as planning weddings, completing home renovations and creating recipes.
In June, Ben Silbermann stepped down as chief executive, becoming executive chairman. The company named Bill Ready, who had been president of commerce at Alphabet Inc.’s Google since 2020, as his replacement.
The moves came after several Pinterest executives departed in recent months, including its head of global business operations and its investor-relations chief.
An expanded version of this report appears on WSJ.com.
Also popular on WSJ.com:
12 hours of misery at Heathrow: Huge crowds, lost bags, endless cancellations.
People have money but feel glum — what does that mean for the economy?