Market Overview

Twitter Shares Go Nowhere On Flipboard Rumor

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Twitter Inc (NYSE: TWTR) shares went nowhere on a widely reported rumor it may seek to acquire the content aggregator Flipboard.

Acquisition talks were reported Monday by Re/code, which cited "multiple sources with knowledge of the situation."

Talks are currently "stalled" on the all-stock deal that would value Flipboard at more than $1 billion, according to the report.

Twitter shares are off about 28 percent in the past month and changed hands recently at $36.49, down $0.11 cents.

Related Link: Will Twitter Buy Flipboard? SunTrust's Bob Peck Chimes In

Much of Twitter's recent market meltdown followed its first-quarter earnings report last month when the company missed target numbers for monthly users and said prices it obtained for advertising were disappointing.

Twitter Chief Financial Officer Anthony Noto has been pushing a deal with Flipboard since the beginning of the year, according to Re/code, which noted increasing pressure from Wall Street on Twitter to grow its audience and innovate its products.

Billionaire Twitter investor Chris Sacca last week signaled he's likely to get more critical of Twitter and said the company should rapidly increase its monthly user base by 65 percent.

Flipboard calls itself a "personal magazine" in which readers collect stories, images and videos into their own magazines to express personal interests and perspectives.

Flipboard was started five years ago by former iPhone engineer, Evan Doll, and former Tellme Networks Inc. Chief Executive Michael McCue.

 

Posted-In: Anthony Noto Chris Sacca Evan Doll Michael McCue Twitter FlipboardRumors Movers Tech

 

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