Podcasts Could Become the New Secret Weapon in Boardroom Battles
From celebrities and influencers to journalists and business leaders, it seems everyone has a podcast these days. But did we ever imagine that an activist hedge fund would use one as a weapon in a boardroom battle?
Elliott Investment Management, the activist hedge fund, has done just that. As part of its ongoing efforts to shake up leadership at Southwest Airlines, Elliott has taken an unconventional approach by launching a podcast to reach Southwest’s investor base directly.
After acquiring an 11% stake in Southwest and pushing for leadership changes back in June, the hedge fund escalated its campaign earlier this month by requesting a special shareholder meeting in December to vote on eight new board members. The very next day, Elliott released the Stronger Southwest podcast – “a new podcast series that will feature 1:1 conversations with Elliott’s highly qualified director nominees…offering shareholders an opportunity to learn about these nominees.”
While this may not seem like a groundbreaking move given the popularity of podcasts, it is the first time the medium has been used by activist investors as part of a corporate campaign. So why has Elliott taken this route from a communications perspective?
1. It allows the firm to control the narrative and deliver its message without relying on earned media. The podcast features in-depth, 20-minute discussions with the board candidates—offering them exposure they wouldn’t typically get through conventional broadcast outlets.
2. Unlike many public companies that have just a handful of major institutional investors, Southwest has a large number of retail shareholders. Instead of relying on traditional stakeholder letters, which are time-consuming and often too formal for many retail investors, Elliott’s podcast provides a direct and efficient means of engaging this broader audience, meeting them where they already consume content.
3. If the podcast gains momentum, Elliott could also leverage subscriber data to retarget ads and reinforce its messaging to key investors, much like the strategies we see in US election campaigns.
Will podcasts become the new go-to tool for activist investors? It’s too early to tell, but all eyes are on whether Southwest and Elliott can reach an agreement ahead of the December 10th shareholder meeting, avoiding a messy proxy battle. If successful, it could mark a shift in how activist investors communicate in today’s evolving media landscape.