Jana Partners Buys Stake In Twitter Inc (NYSE:TWTR) is the current news that is in everyone’s mouth. The Hedge Fund, which is a well-known activist investment firm, has confessed of having acquired a stake in Twitter of about 2.9 million shares. As a result, the microblog website’s shares rose to as much as 2%. The social media platform, which apparently has been struggling with recharge user growth, also received accolades from President-elect Donald Trump while referring to it as a great form of communication.
Given that Twitter has been facing a series of challenges in the recent past, speculations have it that Jana Partners could be pushing for additional reforms or better still, a sale of the company. Apparently, there have been ongoing discussions of a possible acquisition owing to its underperformance, stalling of user growth and leadership exodus. All these have made the company less and less appealing and perhaps the reason why various corporate are racing to acquire it.
Jana Partners Buys Stake InTwitter: Other interested suitors?
Twitter’s situation has been so wanting such that it has turned to cost-cutting measures the likes of widespread layoffs. A month ago, the company announced a 9% cut of its workforce. The revenue was at $616 million, which was 8% up year over year and a representation of the ninth quarter in a row of sales deceleration. The latest hit was the shutdown of its Vine video service, which triggered the notion that the company was in a terrible status. However, it remains unclear whether if Jana Partners Buys Stake In Twitter will solve a majority of Twitter’s problems.
While at this, Alphabet Inc (NASDAQ:GOOGL) Google, Walt Disney Co (NYSE:DIS), and Apple Inc. (NASDAQ:AAPL) are some of the companies that had registered their interest in acquiring Twitter. While none of them succeeded, marketing software maker Salesforce.com was seen as the most serious suitor but apparently, it dropped the interest. Abuse and harassment were tagged as the reasons that made Salesforce walk away.
How possible is it that Jana Partners will bail out Twitter?
Given that it is behind the restructuring of the likes of McGraw-Hill Publishing and ConAgra Foods, it is likely that it could also offer a solution to Twitter. However, it has more issues with its business and product strategy than structure but nevertheless; there is still hope of a positive outlook.
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