Twitter shares jump on report of possible Silver Lake deal1 min read . Updated: 01 Feb 2016, 10:05 PM IST
Twitter shares are down 65% from a peak last April, valuing the company at about $12.4 billion, and making it a less expensive takeover target
New York: Twitter Inc. shares jumped after a report in The Information said investor Marc Andreessen and private equity firm Silver Lake have “considered some sort of deal."
The Information said it didn’t know if a deal is “active" now. Spokespeople for Andreessen and Silver Lake declined to comment to the news site.
Twitter shares rose 8.3% to $18.20 at 10:38 a.m. in New York. They are still down 65% from a peak last April, valuing the company at about $12.4 billion, and making it a less expensive takeover target.
“Twitter has been going nowhere but down," said Erik Gordon, a professor at the University of Michigan’s Ross School of Business. “It is easy prey for a takeover, and a go-private deal with Silver Lake could be its best bet. Silver Lake is smart, patient money in the IT space."
Twitter is in the midst of a major overhaul to help boost growth that has stalled. In January, four executives departed, including the product and engineering chief. The social media company named a new chief marketing officer, Leslie Berland, formerly of American Express Inc., and is expected to appoint two new board members soon. Bloomberg