Following its recently quarterly earnings call rumours are rife that twitter could be set to become a private business again and be bought by two of its major shareholders. Shares soared by 8% as it became rumoured an unlikely duo of Saudi investor Prince Al-Waleed Bin-Talal and former Microsoft boss Steve Ballmer could make a bid for the company.
Despite positives steps in recent months twitter has failed to meet the markets expectations since its 2013 IPO valued it at over $20Bn as it has failed to achieve mainstream popularity and turn its active user base into revenue through advertising.
A move back to a private entity could provide twitter with the ability to focus its attentions on product development rather than profit targets. With frustrations of users around some simple product enhancements (such as editing tweets, deleting spam profiles and releasing dormant usernames) the focus of being a private company could give them the head space they need to enter a new phase of growth.
At over 300M active user twitter is far from a baron landscape however it would need to truly reach the mainstream of Internet users if it was to meet the markets expectations so maybe going private would not be such a bad idea. Watch this space.