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Twitter Up For Sale? Shares Spike Amid Report Marc Andreessen, Silver Lake 'Have Considered Some Sort Of Deal'

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Twitter Up For Sale? Shares Spike Amid Report Marc Andreessen, Silver Lake 'Have Considered Some Sort Of Deal'

Shares of Twitter Inc (NYSE: TWTR) were trading higher by 8 percent early Monday morning after The Information reported that it is "hard to overstate how important the next 10 days are" for the "Silicon Valley sensation turned soap opera company."

According to The Information, several of the high profile executives who quit their job at Twitter recently did so due to their "falling confidence in the company" and "any way you slice this, these departures are negatives for the company."

Meanwhile, influential investor Marc Andreessen and Silver Lake "have considered some sort of deal." Andreessen was also an angel investor in Twitter and his "love for Twitter" is "obvious." However, the author of the report added "I don't know if anything is active" and spokespeople for both Andreessen's investment fund and Silver Lake declined to comment.

Related Link: Should We Be Concerned About Twitter's Mass Exodus?

"Some investors think there is a friendly deal to be made, but I think they're dreaming," The Information argued. "Jack [Dorsey] isn't giving up; he's doubling down. One Twitter employee said privately last week that the feeling among some executives was that the company's stock is undervalued and will climb. So, I think anyone looking to push through a deal would have to go hostile.

Finally, investors like to speculate that Alphabet Inc (NASDAQ: GOOG) might jump in and acquire Twitter at its deflated valuation. To that, The Information argued that Google could "easily" afford a purchase of Twitter but the "cost of time and effort would be sizable."

Shares traded recently at $17.86, up 6.3 percent in the pre-market session. The company is scheduled to report its Q4 earnings call on February 10.

 

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Posted-In: Jack Dorsey Marc Andreessen Silver Lake The InformationNews Rumors Movers Tech Best of Benzinga

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