Twitter Inc. (NYSE: TWTR) shares soar after a report saying that Marc Andreessen and private equity group Silver Lake have considered buying the company.
The information comes from the report of Jessica Lessin. “Marc Andreessen and private equity firm Silver Lake have considered some sort of deal, according to several people,” she said in her report, “I don’t know if anything is active.”
Twitter shares rose 11.07% to $18.66 at 11:00 a.m. in New York. But the company’s shares were still down about 65 percent from its peak last April.
Jack Dorsey, the chief executive officer of the company, had made some big changes since he became the CEO last October. He announced job cuts, gave shares to employee and replaced the star-shaped “favorite” button to a heart icon. But it seems to be not enough to convince the investor. The shares keep going down in 2016. The company now is valued at about $12.4 billion, making it a potential takeover target.
Twitter’s problem is that the user growth is slowing down. What’s more, In January, four executives departed, including the product and engineering chief. The company named a new chief marketing officer, Leslie Berland, formerly of American Express Inc., and is expected to appoint two new board members soon.
The company becomes a good takeover target. It still has more than 300 million monthly users and the shares price is much lower than last year. It will not be surprised that company is buyout by somebody in the near future.