Steve Ballmer Buys 4% Stake In Twitter: Boon Or Bane ?

Must Read

Apple Store In India: More Of Disappointment Than Excitement?

Apple has started making moves to strengthen its presence in India. With the launch of Apple online...

Windfall! Online Grocery Market In India Looks Set For Purple Patch Ahead

Silver linings are clearly in short supply in the pandemic fuelled world that we have come to...

Facebook’s Chasm Of Distrust: An Ever-Deepening Divide

Facebook, the world's most popular social media platform has failed measurably as it is voted as the...

Steve Ballmer, the former CEO of Microsoft Corporation (NASDAQ: MSFT) and the owner of Clippers basketball team has bought 4% stake of the microblogging network Twitter Inc. (NYSE:TWTR). Ballmer tweeted about this from his newly created Twitter account @Steven_Ballmer. The tweet, however, led to suspicion owing to the uncertainty of the account, however, later Twitter verified his new account by inserting a blue check next to his name.

Soon after the announcement, the Twitter’s stock soared by nearly 5%. The tweet from Steve Ballmer exalted the new initiative of Twitter called “Moments.” The “Moments,” a new feature of Twitter curates the best tweets of the day.

With this move, Steve Ballmer emerged as the third biggest individual shareholder in Twitter. His stock is valued little more than $800 million in the company worth $21 billion. After Evan Williams, Co-founder of Twitter, and Saudi Prince Alwaleed bin Talal, it is the tech billionaire Ballmer who has out his weight behind the company. Steve Ballmer also is the largest single shareholder in Microsoft with 4% stake.

Advertisements

For the last few quarters, Twitter has been struggling with declining revenue despite recording growth in its user base. Probably for a short duration but Ballmer’s move has strengthened the company’s position in the share market.

Is Steve Ballmer Adding Value To Twitter?

Despite the steady growth in its active user base, Twitter is, apparently, in hot waters. Tech pundits claim Twitter is yet to find the revenue mechanism to gain the market confidence. In such scenario what Ballmer gains out of the deal, is questionable. as of now the only possibility of Ballmer making a modest return from his investment is the rumored acquisition possibilities of Twitter by Google.

When we have a glimpse of Ballmer’s earlier initiatives as Microsoft CEO for a decade, we learn that he ventured into a couple of not profitable investments. One such move is the acquisition of Yammer by Microsoft for $1.2 billion in 2012. Yammer is known as a social networking tool for businesses. Alternatively, it is simply the Facebook of Businesses. The industry analysts consider this move as misstep as Yammer was valued at $600 million then. It was Steve Ballmer, however, who pushed this deal to the management of Microsoft.

The history of Steve Ballmer with respect to business ventures do not remain impressive and trust building. However, his new move with the microblogging site may be out of his personal interest. Steve Ballmer never anticipated the reach of iPhone, after the first iPhone’s launch as he laughed at Apple Inc. (NASDAQ:AAPL). His net worth clocks $23 billion, big enough to make a lot of investments.

Despite all odds with Ballmer, it is the investor’s discretion to go ahead with Steve Ballmer to endorse Twitter, having 316 Million monthly active users. In the wake of technology billionaire’s endorsement, can the investors as well users expect enhanced experience from Twitter is yet to be answered.

Advertisements

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

Amazon, Google And Microsoft Are Extreme Angry With TRAI

The big three of the tech industry - Amazon, Microsoft And Google - seems to be quite...

New Android Malware Steals Your Banking Credentials And Let Hackers Access Your Smartphone

If you are an active user of banking apps on your Android smartphone, you must pay close attention to it.

An IT Service Help Desk Is Essential To Drive Business Growth

There's no debate about the fact that an IT service desk, when properly run, leads to both short-term and long-term business growth....

Chinese Investment In Indian Startups Is Now A Distant Dream

When the Indian Government changed its FDI policy in late April, China got handed the short end of the stick for investing...

Why Is Google Pay In Hot Water in India?

Google Pay has been treading in hot water over a Public Interest Litigation as of late. The company is...

TikTok Escapes The Ban In the US, Albeit Temporary

As usual, a new day and a new action relation to TikTok ban in the US. On Sunday, a federal judge has...

In-Depth: Dprime

Will ‘TikTok By Microsoft’ Be A Winner?

For the last two years, TikTok has been in the public eye for all sorts of reasons. First, it was the exploded...

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter,...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one...

More Articles Like This