Company’s shares have fallen more than 75pc since their peak
Shares in Twitter leapt more than 11pc at one stage on Monday amid reports that the company may be a takeover target for private equity group Silver Lake and famous Silicon Valley investor Marc Andreessen.
Mr Andreessen’s venture capital firm Andreessen Horowitz and Silver Lake had looked at buying the micro-blogging site, technology news website The Information reported. The news sent shares in Twitter soaring but they fell back after reports that the private equity group was not interested, trading around 5.5pc up.
Twitter, which is struggling with growth two years after it floated in New York, is rapidly becoming seen as a takeover target as its share price falls, making a potential deal more likely. Its market value is now around $11bn, less than 25pc of its peak.
Google and News Corp have both been rumoured to be interested, although the latter denied it two weeks ago.
Andreessen Horowitz was an early-stage investor in Twitter and Andreessen himself is clearly a fan of the service, tweeting dozens of times a day. However, it is unclear how active the interest is. The Information reported only that the two had looked at a bid in the past.
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The two were part of a group of investors who bought a majority stake in Skype from eBay before selling it at a massive profit to Microsoft in 2011, and Silver Lake has expressed interest in tech turnarounds before. It bought PC maker Dell as the company was struggling to turn itself into an enterprise software company, and was interested in Yahoo in 2011.
Twitter has been hit with a wave of executive departures in recent weeks, and investors have not responded to co-founder Jack Dorsey’s return as chief executive as might have been hoped.