(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.
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 GlaxoSmithKline.
(Reporting by Akanksha Rana and Svea Herbst-Bayliss; Editing by Aditya Soni and David Gregorio)