Twitter stock share increased by 4.5% contributed to acquisition rumor

Twitter puts itself on the spot as its poor products performance and fewer users among the social networking apps. Its user group receives little growth though its management modified the products.

Ev-Williams

One of its co-founder implied the company should considering the management measures included transfer during the interview which led to an increase of Twitter stock share.

Twitter stock share increased by 4.5% on Wednesday. Such an increase was uncommon to Twitter. Twitter capitalization value reached $14 billion when the stock market closed on Wednesday.

EV Williams, one of Twitter co-founders, talked about the transfer issue when he was interviewed by Bloomberg on Wednesday.

As is known to all, the transfer of Twitter becomes an old topic in Wall Street. Twitter is deemed to be sold to a big scale tech company in the eyes of Wall Street analysts and tech media. WhatsApp, Instagram and Snapchat are the star products in mobile social networking market. Twitter is past its prime.

When Bloomberg reporter asked Williams whether Twitter would be an acquired target, he was unwilling to talk about this topic at first. He claimed then Twitter should consider the options include acquisition and merging.

Microsoft ex-CEO Steve Ballmer and A Saudi Arabia Prince show willingness to acquire Twitter in accordance with the news reported lately.

Silicon Valley analysts claimed Twitter is worthy to acquire. It still has attractions to obtain some more resources. The monthly active users of Twitter had 313 million in June. Its increase rate was under 1% compared with the growth in March. Instagram now obtains more users than Twitter.

Besides user growth difficulty, Twitter faces the problem of how to turn its users resource into income and profit. Rob Enderle assumed Twitter is still a valuable company whose value reflects in users growth instead of its revenue models.

Twitter suffered $400 million loss in the second half of last year and the first half of this year. Its total revenue just reached $2.5 billion.

Though the analysts and tech media assumed Twitter is in a dilemma, Williams has faith in Twitter’s development. He implied there is no app like Twitter that tweets such a great amount of messages each day.

In the past year, Jack Dorsey made many modifications for Twitter products which turned out to be flat. Recently, Twitter has been focusing on the development of online videos. It bought live broadcasting copy right of some sports events from NBA. It is about to make breakthrough in online videos.

 

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