Dorsey buys $7 million worth of shares
A few weeks ago, Jack Dorsey, the CEO of Twitter (TWTR), bought company shares worth $7 million—a symbolic move in several ways. The move showed that Dorsey is confident about the prospects of the company that he co-founded and now leads. The move also seemed to show that Dorsey isn’t prioritizing a sale of the company.
Rumors surfaced last year that Twitter was being eyed as a buyout target by several companies, including Salesforce (CRM), Alphabet (GOOGL), and Microsoft (MSFT). But Twitter failed to close a deal and Microsoft, which ended up acquiring Twitter rival LinkedIn.
Dorsey may be holding a turnaround secret
If Dorsey has prioritized turning Twitter around over selling it, Twitter has tried to turn around with mixed results so far.
As December 2016 ended, Dorsey sought to crowd-source ideas from Twitter subscribers about what they would most want to see the company improve or create in the new year. But the responses he received were familiar, such as combating trolling on the site. Yet Twitter has spent recent years rolling out tools to eliminate abuse on the platform.
Maybe video could offer a solution, given that video-themed partnerships such as with the NFL have helped Twitter draw in more users and improve engagement on its platform. But Twitter’s limited audience base of just 319 million monthly active users compared to 1.9 billion on Facebook’s (FB) flagship app means advertisers aren’t giving it a priority in their advertising budgets.
But for Dorsey to take a $7 million bet on Twitter’s stock, he may have some ideas on how to turn the company around.