Twitter Shares Jump on Report of Possible Silver Lake Deal

Updated on

Twitter Shares Rise on Possible Silver Lake Deal

Twitter Inc. shares jumped after a report in The Information said investor Marc Andreessen and private equity firm Silver Lake have “considered some sort of deal.”

The Information said it didn’t know if a deal is “active” now. Spokespeople for Andreessen and Silver Lake declined to comment to the news site.

Twitter shares rose 6.6 percent to $17.91 at the close in New York. They are still down 66 percent from a peak last April, valuing the company at about $12.2 billion, and making it a less expensive takeover target.

“Twitter has been going nowhere but down,” said Erik Gordon, a professor at the University of Michigan’s Ross School of Business. “It is easy prey for a takeover, and a go-private deal with Silver Lake could be its best bet. Silver Lake is smart, patient money in the IT space.”

Twitter is in the midst of a major overhaul to help boost growth that has stalled. In January, four executives departed, including the product and engineering chief. The social media company named a new chief marketing officer, Leslie Berland, formerly of American Express Inc., and is expected to appoint two new board members soon.

(A previous version of this story corrected the market valuation in the third paragraph.)