Belfast Telegraph

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Twitter causes a stir in markets with shares surging amid bid rumours

Published 23/09/2016

Twitter shares have been taking off
Twitter shares have been taking off

Twitter shares soared over 18% on reports that tech giants including Google are circling the social media site.

Twitter is said to be in talks with several companies and could receive a bid soon, business broadcaster CNBC reported, citing sources.

Google and are said to be among the firms eyeing the microblogging site.

US-listed Twitter shares were up 3.38 US dollars at 21.95 US dollars per share.

The social media site has faced growing criticism over earnings momentum, amid sluggish user and advertising growth.

Poor performance even prompted co-founder Jack Dorsey to return to the helm as chief executive back in 2015.

Twitter has since made a notable move towards video and live streaming partnerships under his leadership.

Still, the company reported its weakest revenue growth since its stock market flotation in 2013 back in July, with second quarter revenue rising 20% to 602 million US dollars (£460 million).

It managed to add three million new users, which only accounted for a 1% jump from the first quarter.

Jasper Lawler, a market analyst at CMC Markets said: "With ex-CEO Dick Costello lacking ideas and founder Jack Dorsey split between Twitter and his other company Square, the social network has lost its way.

"The hope for investors would be that under the wing of a big company, it could expand its user base and better monetise those users."

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From Belfast Telegraph