Twitter shares jumped nearly 21 percent in the New York stock market early trading Friday following a report that few companies, such as Alphabet – of Google and Salesforce.com, are talking to buy Twitter.
Twitter shares have drifted up since July on speculation that it may be an acquisition target.
Despite its cultural currency as a communications platform favored by celebrities, politicians, companies and others in the public eye, Twitter has struggled to expand its wider user base. That’s a problem the company’s leadership has yet to address. According to published media reports the discussion for Twitter acquisition is going on at a advanced stage.
“Until Twitter is focused on attracting new users, driving increased use by its existing users and demonstrating its value proposition to people who don’t use the service, we expect it to grow very slowly,” analysts from Wedbush Securities said in a recent note. “We think that its service is too complicated and difficult to use for the average Internet user despite multiple changes.”