The company will be required to appoint two new board members and conduct a search for a new independent director, as well as repurchase $2 billion in shares, the company reports. The buyback will be partially funded by a $1 billion cash injection from Silver Lake.

Late last month we reported that billionaire Paul Singer's Elliott Management had taken the sizeable stake, and was pushing for major changes which included replacing Dorsey and nominating four directors to the board. Dorsey splits his time between Twitter and financial services firm Square, which he co-founded and serves as CEO.

Elliott's four nominees include Jesse Cohn, its head of US activism as well as Silver Lake managing partner Egon Durban.