First on CNBC: CNBC Transcript: Lowercase Capital’s Chris Sacca Speaks with CNBC’s “Closing Bell” Today

WHEN: Today, Wednesday, June 3rd

WHERE: CNBC's "Closing Bell"

Following is the unofficial transcript of a FIRST ON CNBC interview with Lowercase Capital's Chris Sacca on CNBC's "Closing Bell" (M-F, 3PM-5PM ET) today. Following is a link to the video on CNBC.com: http://video.cnbc.com/gallery/?video=3000385403.

All references must be sourced to CNBC.

KELLY EVANS: WELCOME BACK. A MAJOR TWITTER SHAREHOLDER CALLING FOR SOME BIG CHANGES TO THE SOCIAL NETWORK TODAY. LOWERCASE CAPITAL'S CHRIS SACCA SAID A CONVERSATION HE HAD WITH OUR OWN JIM CRAMER INSPIRED HIM TO PUT THE NOTE OUT. CRAMER'S BEEN A VOCAL CRITIC OF CEO DICK COSTOLO.

SOUND FROM JIM CRAMER ON "MAD MONEY": I BELIEVE THAT TWITTER REMAINS A GOLD MINE. AND WHILE I THOUGHT THESE FOLKS HAD FIGURED OUT A WAY TO MINE IT, I WAS WRONG. TO MINE THE GOLD, TWITTER HAS TO FIGURE OUT HOW TO MAKE IT MORE ACCESSIBLE. AND WHILE IT IS COOL, WELL, COOL'S NOT TRANSLATING INTO NUMBERS. HOW CAN THIS SEVERE DECREE BE REVERSED? BY PRAYER? IF IT KEEPS FAILING, WELL LET'S JUST SAY SOMEONE ELSE WILL TAKE CARE OF TWITTER. NOW I DON'T THINK MOST INVESTORS ARE GOING TO BE THAT PATIENT. HENCE, AGAIN, MORE PAIN.

EVANS: WELL, CHRIS SACCA JOINS ME NOW, IN A FIRST ON CNBC INTERVIEW, ALONG WITH OUR VERY OWN JULIA BOORSTIN. WELCOME TO YOU BOTH. SO CHRIS, JIM SUGGESTED PRAYER. YOUR SUGGESTIONS HAVE MORE TO DO WITH LIVE CHANNELS AND A SAVE BUTTON. WHAT DO YOU THINK TWITTER REALLY NEEDS TO DO HERE TO INCREASE THE USE OF THIS PRODUCT?

CHRIS SACCA: I THINK TWITTER JUST NEEDS TO GO OUT AND COURT THE NEXT FEW HUNDRED MILLION USERS. INCREMENTAL CHANGES TO THE EXISTING PRODUCT AREN'T GOING TO DO IT. BUT THERE ARE PEOPLE OUT THERE LOOKING FOR AN EASIER WAY TO SEE TWEETS, AN EASIER WAY TO PARTICIPATE IN THE NETWORK, AND THEY WANT TO FEEL LIKE THEY'RE THERE, ENGAGED, HAVING FUN. THEY'RE APPRECIATE THERE. AND I THINK THERE ARE CLEAR STEPS TO GET THE PRODUCT IN THAT DIRECTION.

EVANS: SURE. AND YOU WERE POSITIVE ABOUT THEIR ACQUISITION OF PERISCOPE FOR LIVE VIDEO. ONE OF THE SUGGESTIONS YOU MAKE HAS TO DO WITH AN APP CALLED NUZZLE, WHICH HAS A WAY OF KIND OF TAKING CONTENT AND MAKING IT MORE READABLE, LIKE A NEWSPAPER, FROM TWITTER. SO IS THIS SOMETHING THEY ARE GOING TO HAVE TO DO BY ACQUISITIONS? OR IS THIS SOMETHING THAT IF DICK COSTOLO WOKE UP TOMORROW AND DECIDED HE WANTED THESE ADDITIONAL FEATURES, THESE BUTTONS THAT YOU MENTIONED, HE COULD AND SHOULD DO IT?

SACCA: THERE IS AN EASY PATH TO GO AND ACQUIRE SOME OF THESE COMPANIES, BUT THEY COULD DO THIS STUFF ORGANICALLY. THE CHALLENGE IS THEY HAVEN'T DONE IT FOR YEARS. THESE ARE CONVERSATIONS WE'VE BEEN HAVING FOR A LONG TIME, INSIDE AND AROUND THE COMPANY. AND SO AS A SHAREHOLDER, I JUST WANT TO SEE THEM EXECUTE ON THIS STUFF. I THINK IT CAN BE SO MUCH EASIER TO SEE THE GREAT NEWS THAT'S HAPPENING THERE, SEE THE GREAT PHOTOS AND VIDEOS, TO FOLLOW LIVE EVENTS, TO FOLLOW A TOPIC OR SPORT IF THAT'S ALL YOU'RE INTERESTED IN. I THINK THESE ARE OBVIOUS PATHS THE COMPANY CAN GO DOWN, AND THEY WILL COURT THE NEXT FEW HUNDRED MILLION USERS VERY QUICKLY, VERY EASILY.

JULIA BOORSTIN: HI, CHRIS, JULIA HERE. NOW YOU DID NOT COMMENT SPECIFICALLY ON CEO DICK COSTOLO AND WHETHER OR NOT YOU THINK HE'S THE RIGHT PERSON TO BE RUNNING THE COMPANY. WHAT DO YOU THINK?

SACCA: LOOK, IF THEY EXECUTE ON THE KINDS OF IDEAS THAT I PUT OUT THERE, WHICH BY THE WAY AREN'T MY IDEAS ALONE, BUT IDEAS OF MANY PEOPLE WHO HAVE CARED ABOUT THIS COMPANY FOR YEARS, THEN NOBODY WILL BE ASKING THOSE QUESTIONS ABOUT DICK IN THE MONTHS AHEAD. IF THIS IS NOT THE STUFF THEY'RE WORKING ON AND THEY CAN'T GET THIS STUFF DONE, THEN I THINK THE BOARD IS GOING TO ACT IN THE INTEREST OF THE SHAREHOLDERS. BUT I, AS I NOTE IN THE MEMO, AM OPTIMISTIC ABOUT THE DIRECTION THEY'RE MOVING IN WITH A FEW OF THEIR RECENT PRODUCT LAUNCHES, AND I JUST HOPE THEY GO FARTHER AND FASTER WITH THAT STUFF.

BOORSTIN: NOW, YOU SAY YOU'RE NOT AN ACTIVIST SHAREHOLDER, BUT YOU JUST WROTE THIS 8,500-WORD MISSIVE ABOUT WHAT YOU THINK TWITTER NEEDS TO DO. THE IMPLICATION IS THAT YOU'RE GOING TO SELL SHARES IF YOU DON'T SEE THESE CHANGES.

SACCA: NO, I'M NOT OUT THERE SELLING SHARES. THERE'S NO PUNITIVE RESULT IF TWITTER DOESN'T DO THIS KIND OF STUFF. IT'S JUST, I WAS LITERALLY ONE OF THE FIRST INVESTORS IN THE COMPANY, AN ADVISER OF THE COMPANY SINCE ITS EARLY DAYS. I HAVE 1.5 MILLION FOLLOWERS ON TWITTER, I USE IT EVERY DAY, IT'S INFLUENCED EVERY ASPECT OF MY LIFE. I'M OBSESSED WITH THE COMPANY. AND WHEN YOU'RE OBSESSED WITH SOMETHING LIKE THIS FOR NINE YEARS, IT TURNS OUT YOU PROBABLY HAVE A LOT TO SAY ABOUT IT. HENCE THE 8,500 WORDS. WHEN YOU CARE THAT DEEPLY ABOUT SOMETHING, YOU WANT TO SEE IT REACH ITS FULL POTENTIAL, AND THAT'S WHAT I WOULD LIKE TO SEE WITH TWITTER AT THIS POINT. AND I THINK IT'S NOT ACTUALLY THAT HARD.

EVANS: AND YET, CHRIS, YOU SEEM TO BE AT ODDS WITH OTHER TWITTER INVESTORS LIKE FRED WILSON, WHO REPLIED TO YOUR INDICATION YOU WOULD HAVE SOME SUGGESTIONS ABOUT THE COMPANY THIS WEEK BY SAYING, I OWN A LOT OF TWITTER AND I'M A BIG FAN OF THE COMPANY AND OF DICK. WHAT MORE DO YOU HAVE TO SAY TO FRED AT THIS POINT? DO YOU THINK HE'S WRONG ABOUT THE COMPANY'S PROSPECTS?

SACCA: NO, I JUST THINK FRED WAS JUMPING INTO A CONVERSATION AND CRITIQUING ME BEFORE HE ACTUALLY SAW WHAT I HAD TO WRITE. AS YOU SAW ON THE POST, IT WASN'T A HIT ON ANY MEMBER OF THE MANAGEMENT TEAM AT ALL. AND I THINK FRED WAS OUT OF LINE, ACTUALLY, PREEMPTING THAT IN ANY WAY. AND HE QUESTIONED MY LOYALTY TO THE COMPANY AND I POINTED OUT, YOU KNOW, HE SOLD ME A TON OF STOCK WELL BEFORE THE IPO. NOT TRADITIONALLY THE HALLMARK OF SOMEBODY WHO'S LOYAL TO ONE OF THEIR START-UPS.

EVANS: OUCH. UNDERSTOOD. CHRIS, HOW MUCH OF AN INVESTMENT DO YOU HAVE IN TWITTER AT THIS POINT?

SACCA: I DON'T DISCLOSE IT. I OWN A BUNCH PERSONALLY AND A BUNCH THROUGH OTHER FUNDS. IT'S ENOUGH THAT I CARE ENOUGH TO SPEND A LONG TIME WRITING 8,500 WORDS ABOUT A COMPANY.

BOORSTIN: I MEAN, CHRIS, YOU SAY YOU'RE NOT SELLING SHARES RIGHT NOW, BUT THE QUESTION IS, NOW THAT YOU'VE LAID OUT YOUR VISION FOR THE COMPANY, THE CHANGES YOU WANT THEM TO MAKE, AND THERE'S A GREAT URGENCY TO A LOT OF THESE RECOMMENDATIONS, WHAT'S GOING TO INFLUENCE YOUR DECISION ABOUT HOW MANY SHARES YOU MIGHT SELL AND WHEN?

SACCA: LOOK, I DON'T THINK ABOUT THIS AS A SELL. YOU KNOW, MY BASIS IN THE STOCK IS PROBABLY SOUTH OF A DOLLAR A SHARE. THIS IS ALL UPSIDE FOR ME. THIS IS SOMETHING I HOLD PERSONALLY IN TRUST FOR MY KIDS. THIS IS A VERY, VERY LONG-TERM HOLD. AND I KNOW THIS COMPANY IS GOING TO BE MASSIVELY MORE VALUABLE THAN IT IS TODAY. THE URGENCY COMES FROM FRUSTRATION THAT THESE ARE IDEAS THAT I WISH HAD BEEN EXECUTED UPON YEARS AGO, COULD EASILY BE DONE NOW. I WANT TO SEE THE COMPANY MOVING IN THIS DIRECTION. IF THIS TEAM IS DOING THAT, THEN I'M PSYCHED. THERE'S NO SELLING ON THE HORIZON. IF THE TEAM ISN'T DOING THAT, I'M CONFIDENT THIS BOARD IS GOING TO ACT IN THE INTEREST OF SHAREHOLDERS AND THEY'LL LOOK FOR OTHER ALTERNATIVES FOR THE COMPANY. BUT I DON'T SEE THE STOCK GOING ANYWHERE LOWER THAN IT IS TODAY. THIS COMPANY MEANS TOO MUCH TO THE ONLINE ECOSYSTEM. IT HAS TOO MUCH POTENTIAL FOR ADVERTISING. MICROSOFT, FACEBOOK, GOOGLE WOULD ALL WANT TO OWN THIS COMPANY. SO I SEE, WE'RE AT A FLOOR RIGHT NOW. WHAT I'M MORE INTERESTED IN IS THE PROSPECT FOR THIS STOCK BEING TWO, THREE TIMES MORE VALUABLE.

BOORSTIN: AND IT SEEMS LIKE MANY OF YOUR RECOMMENDATIONS ARE ADVOCATING FOR A PRETTY FUNDAMENTAL CHANGE IN WHAT TWITTER IS. YOU'RE SAYING THERE NEEDS TO BE MORE HUMAN CURATION. YOU'RE ADVOCATING THAT IT BE BROKEN INTO A NUMBER OF DIFFERENT APPS, MORE LIKE A PORTFOLIO OF APPS. DO YOU THINK TWITTER COULD MAKE ALL OF THESE CHANGES AS QUICKLY AS YOU'D LIKE, WITHOUT IT ALIENATING A LOT OF USERS? I MEAN, ISN'T THAT A BIG RISK?

SACCA: YEAH, IF YOU READ WHAT I'VE WROTE, NOTHING HAS TO ACTUALLY CHANGE THE CORE FEED. I BELIEVE THE RAW FEED IS A BEAUTIFUL, BEAUTIFUL THING. AND IT'S AMAZING TO SEE THE IMPACT IT'S HAD ON THE WORLD. BUT THERE ARE HUNDREDS OF MILLIONS OF USERS, ACTUALLY, CLOSE TO 1 BILLION WHO COME TO THE SITE AND NOT FOUND WHAT THEY'RE LOOKING FOR AND ABANDON. AND THOSE PEOPLE ARE LOOKING FOR SOMETHING EASIER, LESS INTIMIDATING. SO THESE ARE PATHS BY WHICH TWITTER COULD GO DOWN TO MAKE IT MUCH MORE APPROACHABLE, ENGAGING AND FUN. YOU TALK ABOUT HOW HARD IT WOULD BE IF TWITTER BOUGHT NUZZLE TOMORROW AND LABELED IT TWITTER NEWS, THEY COULD INSTANTLY HAVE ACCESS TO ALL OF THE BEST LINKS THAT ARE ALL HAPPENING ON TWITTER, ARRANGED IN A REALLY EASY-TO-DIGEST WAY FOR ANY USER, WHETHER THEY'RE LOGGED IN OR LOGGED OUT. IT'S JUST NOT THAT HARD TO GO AHEAD AND TRY SOME OF THESE EXPERIMENTS.

EVANS: MEANTIME, CHRIS, YOU HAVE MENTIONED A COUPLE OF POTENTIAL SUITORS FOR TWITTER. HOW GOOD OF A FIT WOULD THIS COMPANY BE FOR GOOGLE? WE ASKED A GOOGLE SHAREHOLDER LAST HOUR, AND HE THOUGHT IT WOULD BE A GREAT USE OF GOOGLE'S CASH.

SACCA: I THINK IT'S A FANTASTIC USE OF GOOGLE'S CASH. IT'S UP TO THIS BOARD TO FIGURE OUT IF THAT'S SOMETHING THEY WANT TO PURSUE. I DON'T THINK THERE'S ANY RELIGION ON THIS BOARD ABOUT REMAINING AN INDEPENDENT COMPANY FOREVER. THAT SAID, RIGHT NOW, I THINK A LOT OF THE BOARD MEMBERS SEE THESE TYPES OF RECOMMENDATIONS, SEE THIS KIND OF POTENTIAL FOR THE COMPANY, AND REALIZE, THERE IS A LOT OF VALUE IN KEEPING IT INDEPENDENT FOR NOW. I THINK IF THEY EVER ACHIEVE ANY DOUBT OR START DOUBTING THOSE PROSPECTS, THEY'LL LOOK FOR THOSE OTHER OPTIONS. BUT FROM THE GOOGLE SIDE, IT'S AN INSTANT FIT. THIS IS THE THING THAT GOOGLE HAS NEVER HAD. THEY'VE NEVER UNDERSTOOD SOCIAL, THEY HAVE NEVER UNDERSTOOD THOSE PERSONAL INTERACTIONS. THIS BOLTS RIGHT IN CLEANLY.

EVANS: YOU DO THINK THOUGH FOR THE TIME BEING THAT TWITTER WOULD BE BETTER OFF AS A STANDALONE COMPANY? OR IS THERE SOMETHING THAT GOOGLE COMING TO THE TABLE WITH ITS RESOURCES OR JUST IMPETUS FOR CHANGE COULD AFFECT HERE, BETTER FOR THE COMPANY IN THE LONG-TERM?

SACCA: IF THE COMPANY IS WORKING ON THE STUFF THAT I'M TALKING ABOUT, THEN IT'S MUCH BETTER FOR THIS TO BE AN INDEPENDENT COMPANY, BECAUSE THERE'S SO MUCH MORE VALUE TO BE UNLOCKED THERE. IF THEY'RE NOT, THEN GOOGLE SHOULD COME IN AND BUY THIS THING, FACEBOOK SHOULD BUY IT, SATYA AT MICROSOFT SHOULD MAKE A BID. BUT IF THIS STUFF IS ACTUALLY HAPPENING AND THE COMPANY IS LISTENING TO THESE TYPES OF RECOMMENDATIONS, THEN THERE WILL UNDOUBTEDLY BE HUNDREDS OF MILLIONS OF NEW USERS. HAPPY USERS, ENGAGED USERS, SEEING MORE ADS, BUYING MORE STUFF, AND INCREASING THE VALUE OF THE SHARES.

EVANS: WE'LL LEAVE IT THERE, CHRIS. THANKS SO MUCH FOR JOINING US THIS AFTERNOON.

SACCA: THANK YOU, GUYS.

EVANS: CHRIS SACCA, OUR JULIA BOORSTIN, AS WELL. JULIA, THANK YOU SO MUCH.

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