Twitter shares surged by as much as a fifth on Friday amid speculation that the ailing social media company was about to be bought. The microblogging site’s stock rose by 20 per cent in the US as potential buyers including Google and Salesforce.com were said to be moving in. In early trading, shares were up shares were up $3.38 at $21.95 with reports the board was open to a deal which could sooner rather than later. Jasper Lawler, a market analyst at CMC Markets said: “The hope for investors would be that under the wing of a big company, it could expand its user base and better monetise those users.”
With ex-CEO Dick Costello lacking ideas and founder Jack Dorsey split between Twitter and his other company Square, the social network has lost its way.
Analyst Jasper Lawler
Twitter has been struggling to lure new users or turn a profit since it was listed on the stock exchange in 2013. Even with co-fiunder Jack Dorsey back at the helm, the company reported its weakest revenue growth in July, up by 20% to $602 million. It managed to add three million new users, which only accounted for a 1% jump from the first quarter. In May Mr Dorsey told the BBC that the company was making progress but “things take time to change”.