Twitter takeover rumor sends shares soaring 10%

Twitter shares up 10 percent

Shares at Twitter jumped 10% on Monday following a report from tech news site The Information that venture capitalist Marc Andreessen may want to team up with private equity firm Silver Lake to acquire a majority stake in the popular but struggling social media company.

Andreessen and Silver Lake teamed up to acquire a majority stake in Skype in 2009 from eBay. They eventually turned the company around and sold it to Microsoft.

Silver Lake and Andreessen were not immediately available for comment.

Twitter’s stock is still down more than 20% this year and is 30% below its $26 initial public offering price from November 2013.

Takeover speculation at Twitter is nothing new. Rumors suggesting Google would buy the company have been floating around for months. Those rumors only grew when Twitter named former Google chief business officer Omid Kordestani as its new executive chairman in October.

CEO Jack Dorsey has failed to turn around the company as he balances his time between Square and the social media network he founded.

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Among Twitter’s allies are Saudi Prince Alwaleed Bin Talal and former Microsoft CEO and L.A. Clippers owner Steve Ballmer.

Dorsey will have a chance to prove the naysayers wrong on February 10 when Twitter releases its financials.

If Twitter fails to impress with its quarterly financial’s, rumors of a takeover will likely continue to heat up.

Written by Franklin Simmons

Franklin Simmons

Franklin Simmons is BusinessPundit's Tech Editor. His life is consumed with a love of augmented reality, mobility, and emerging technology. He extensively covers all areas of technology, including the computing, automotive, and healthcare sectors.