Market Overview

Twitter's Board Needs To 'Take A Hard Look At What Comes Next'

Twitter's Board Needs To 'Take A Hard Look At What Comes Next'

Members of Twitter Inc (NYSE: TWTR)'s board of directors will meet on Thursday and the discussions could center around the company's fate as a standalone company, according to Recode.

Recode, citing its sources, reported that the possibility of Twitter selling itself became "more plausible" after the company's co-founder and board member Evan Williams told Bloomberg that the company needs to "consider the right options" in regards to its future as a standalone company.

However, finding a buyer won't be an easy task, as the price tag on any deal could be around $18 billion. Recode suggested this would represent a "steep price tag" for a company that has been showing "persistent issues with growth" while simultaneously losing money each quarter.

Related Link: If Twitter Were An M&A Target, Who Would Want It?

Recode's sources also suggested that another option on the table for Twitter would be a new round of layoffs and this may be inevitable. Twitter is "considered to be too bloated" with 3,860 employees and a stock-based compensation program which paid out $168 million last quarter, which represents roughly 28 percent of its entire quarterly revenue.

Twitter could also consider selling units like MoPub, Vine or Fabric which would result in a "leaner and more focused" company that would be more appealing to a potential buyer.

Bottom line, it has been more than a year since a major change in management in which Jack Dorsey took over as interim CEO. Since then, Twitter has "failed to generate any kind of positive momentum." As such, whatever Twitter's board decides to do "should probably happen quickly."

"Whatever the company decides to do should probably happen quickly," Recode noted.

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Posted-In: Bloomberg evan williams Jack Dorsey ReCodeNews Rumors Tech Media Best of Benzinga


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