Twitter To Mull Its Future as Takeover Rumors Swirl Again

Speculation that Twitter could sell itself to another company has reignited, and don't expect the takeover rumors or skepticism to fizzle out anytime soon.

The company's board of directors is scheduled to meet Thursday and will be discussing Twitter's fate as a stand-alone company and the possibility of more layoffs, technology blog Recode reported Tuesday, citing anonymous sources.

Twitter did not respond when asked about the rumors.

Last week, Twitter's stock jumped more than 4 percent after Twitter co-founder Ev Williams told Bloomberg TV the tech firm has to consider all its options after being asked about whether it can remain an independent company.

Twitter, which has struggled to attract new users and hit Wall Street's expectations, has been facing takeover rumors for more than a year, but a buyout hasn't come to fruition. Meanwhile, the company's stock has dropped even after Twitter co-founder Jack Dorsey [pictured above] returned in 2015 to lead the company as its new CEO.

Some analysts are taking these renewed takeover rumors with a grain of salt. Despite Twitter's struggles, an acquisition deal could come with a high price tag.

"I think a lot of people are not sure what to make of Twitter. They don't know if Twitter is going to have long-term staying power or if it's going to be overtaken in terms of relevance by the likes of Instagram or Snapchat," said Scott Kessler, an analyst with S&P Global Market Intelligence.

While companies such as Facebook and Google have been making big acquisitions and rolling out new features for its users, Twitter has lagged behind. Pointing to Twitter's declining stock price and executive departures, Kessler said that there's been a lot of disappointment with Dorsey's performance as CEO in the last year.

Other analysts say that Twitter is still a major player when it comes to digital advertising, which could...

Comments are closed.