Twitter shares up sharply on report of possible investment deal

Twitter shares are getting a big boost this morning after a report about a possible investment deal for the San Francisco company, which has once again become the target of takeover speculation as its stock has sunk to all-time lows.

The Information reports that Marc Andreessen and private equity firm Silver Lake have “considered some sort of deal” involving Twitter. Venture capitalist Andreessen, of course, is one of the last people who needs to be convinced about the utility or purpose of Twitter — he’s quite a prolific user of the microblogging service.

The Information, which also said CEO Jack Dorsey is trying to shake up the company’s board, said it didn’t know whether the Andreessen-Silver Lake talks are still active.

The report comes after the departure of four key Twitter executives just over a week ago, after which CEO Jack Dorsey reportedly rallied the troops Thursday and got them all fired up to tweet their love for the company.

Twitter shares are up more than 8 percent to about $18.20 at the moment, after trading as high as $18.75 earlier.

As the company has struggled to show significant growth in users and as it continues to be compared to much-larger and still-growing Facebook, its shares first sank to lower than their IPO price of $26 last August. They’ve gone up and down since then but have traded consistently lower than their IPO price since November. They’re down more than 20 percent since the beginning of 2016. Twitter went public in November 2013, its shares starting trading at $45.

Twitter has been the subject of sporadic takeover rumors, with rumored potential buyers ranging from Google to Apple to, most recently, News Corp. As Queenie Wong wrote a couple of weeks ago, Twitter shares got a bump from a rumor that News Corp. was interested in buying the company, then fell after News Corp. denied the rumor.

Twitter is scheduled to report fourth-quarter and full-year earnings Feb. 10.

Photo from Bay Area News Group archives

 

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  • based on nothing but a reading of co-founder Biz Stone’s tell-all book, it’s tempting to suspect the departed execs were pushed out for insufficient enthusiasm assassinating the original twitter ethic, in favor of whatever it takes to monetize the enterprise. # ah well

    “things a little bird told me”, on the shelf now at a public library near YOU.. http://www.goodreads.com/book/show/18296144-things-a-little-bird-told-me

 
 
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