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    Twitter’s stock falls below IPO price on user growth worries

    By SHOOTUpdated:No Comments740 Views
    In this July 28, 2015 file photo, the logo for Twitter adorns a phone post on the floor of the New York Stock Exchange. (AP Photo/Richard Drew)
    NEW YORK (AP) --

    Twitter's battered shares dipped below their IPO price on Thursday as investors worry about the company's ability to grow its user base.

    Shares of the San Francisco-based short messaging service fell 5.8 percent to close at $26, after trading as low as $25.92 during the day amid a broader market decline.

    Twitter went public in November 2013 at an initial public offering price of $26 per share.

    The stock is down 29 percent since Twitter's July 28 earnings report, when it warned that boosting its user growth rate will take a long time.

    The challenge for Twitter is broadening the appeal of its service to the mass market amid fierce competition from Facebook as well as messaging apps like WhatsApp or Snapchat. While many people are familiar with Twitter, the company has not been able to convince people that they need it.

    In addition, Twitter is also without a permanent CEO, although co-founder Jack Dorsey is at the helm on an interim basis.

    Tags:Twitter



    DirecTV calls off acquisition of rival Dish, possibly ending a yearslong pursuit

    Friday, November 22, 2024
    Dish Network satellite dishes are shown at an apartment complex in Palo Alto, Calif., Feb. 23, 2011. (AP Photo/Paul Sakuma, File)

    DirecTV is calling off its planned acquisition of rival Dish after the offer was rejected by bond holders at that company.

    The deal was reliant on Dish bond holders agreeing to trade in the debt they held for debt in the new company, a swap that would have cost them about $1.6 billion, collectively.

    The retreat by DirecTV this week may end a years-long effort by the company to acquire both Dish and Sling after it announced the bid in September.

    DirecTV was looking to acquire Dish TV and Sling TV from its owner EchoStar in a debt exchange transaction that included a payment of $1, plus the assumption of approximately $9.8 billion in debt. The deal was contingent on several factors, including regulatory approvals and bondholders writing off debt related to Dish.

    "While we believed a combination of DirecTV and Dish would have benefited all stakeholders, we have terminated the transaction because the proposed exchange terms were necessary to protect DirecTV's balance sheet and our operational flexibility," DirecTV CEO Bill Morrow said in a statement.

    The prospect of a DirecTV-Dish combo has long been rumored, and reported talks resurfaced over the years. And the two almost merged more than two decades ago — but the Federal Communications Commission blocked the deal valued at the time at $18.5 billion deal, citing antitrust concerns.

    The pay-for-TV market has shifted significantly since. As more and more consumers tune into online streaming platforms, demand for more traditional satellite entertainment continues to shrink.

    DirecTV says that it will continue to invest in next-generation streaming platforms and offer new packaging options while integrating content from live TV alongside direct-to-consumer... Read More

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