3 ms·

That's not a turn around scenario. It would be better to try to find a buyer at the current price.

• keypusher 10y ago
  Finding a new buyer does nothing to turn the business into a profitable enterprise. They need to cut costs.
• JumpCrisscross 10y ago
  > It would be better to try to find a buyer at the current price It would be even better to find a buyer at ten times the current price! Unfortunately, reality isn't so pliant. Twitter had, as of the end of 2016, $3.8bn of cash and short-term investments on their balance sheet [1]. They also have $500MM of current liabilities and $1.6bn of long-term debt. This leaves $1.7bn of "free" cash. Excluding financing activities, Twitter's operations and investments have lost about $450MM a year for the past three years ($1.0bn in 2014, $520MM in 2015 and a net gain of $165MM in 2016). So we're talking a few years until Twitter's face meets dirt. It's a better bet to wait than lock yourself into an unsustainable valuation. [1] https://www.google.com/finance?q=NYSE%3ATWTR&fstype=ii&ei=UOO1WOnFFYHjsgGUm4HoAw https://www.google.com/finance?q=NYSE%3ATWTR&fstype=ii&ei=UO...
• elgenie 10y ago
  That's just begging the question. OK, so you've found a buyer; what's the buyer to do to turn Twitter around?
  • jy1 10y ago
    Not answering the question, I'm just saying his solution ends up at a valuation at 50% of current, which isn't really a turn around.
    • clintonb 10y ago
      Perhaps the current valuation is too high given the lack of profit.