Elliott Management Acquires Stake in London Stock Exchange Group
Activist investor Elliott Management has built up a substantial stake in the London Stock Exchange Group (LSEG), as reported on Wednesday 11 February 2026. This move comes as the hedge fund aims to drive a turnaround for the stock exchange operator, which has been grappling with significant challenges in the market.
Engagement with LSEG Leadership
According to a report in the Financial Times, Elliott Management has been holding discussions with David Schwimmer, the chief executive of LSEG. While the exact size of the stake remains undisclosed, this development signals a strategic push by the activist investor to influence the company's direction amid ongoing pressures.
Market Performance and AI Concerns
LSEG's shares have declined by over a third in the past year, with recent weeks seeing heavy selling pressure. This downturn is partly attributed to growing concerns that artificial intelligence could undermine the business models of data and software companies, including LSEG. The firm's market capitalisation currently stands at approximately £37 billion.
Since its £22 billion acquisition of Refinitiv in 2019, LSEG's financial data segment has become a more lucrative part of the business compared to its traditional role as a stock exchange operator. However, analysts warn that AI poses a structural challenge to subscription-based models in data and analytics. In a recent report, S&P Global analysts noted, "While AI-driven disruption will vary across the sector, it's a structural challenge to existing software economics."
Broader Market Challenges
LSEG has also faced difficulties due to a dearth of new listings on the stock exchange in recent years and an increasing number of companies leaving the UK's public markets. Last year, the UK fell out of the top 20 global destinations for initial public offerings, highlighting broader issues in the domestic financial landscape.
Elliott's Activist Track Record
Elliott Management is known for its aggressive approach to corporate overhauls. Last year, the hedge fund took a large stake in BP, pushing for significant changes such as a renewed focus on oil and gas and deep cost cuts. It has previously driven transformations at companies like Starbucks, Waterstones, and Southwest Airlines, where it engaged in lengthy disputes over board changes.
Despite this history, the Financial Times reported that Elliott is not expected to advocate for a spin-off of LSEG's stock exchange business. Both LSEG and Elliott Management declined to comment on the situation.
