June 2 (Reuters) - 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% 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% on news that Elliott has a stake and is holding
discussions with management.
The Wall Street Journal first reported the stake.
Elliott has previously worked with companies that were being
lead by founders, including Twitter and SoftBank Group.
The hedge fund invests roughly $40 billion and currently
owns stakes in Duke Energy, where it has urged the company to
consider splitting into three companies, and drugmaker
(Reporting by Akanksha Rana and Svea Herbst-Bayliss; Editing by
Aditya Soni and David Gregorio)