The stock price of Twitter Inc (NYSE:TWTR) surged almost 5% to $31.15 per share after Steve Ballmer, the former CEO of Microsoft Corporation (NASDAQ:MSFT) revealed that he acquired a stake in the social media company.
Ballmer confirmed that acquired a 4% stake in Twitter over the past few months. He commended Jack Dorsey for making the social media company leaner and more focused. Ballmer also praised new product called Moments, which allows people to follow major events.
Last week, the social media company appointed Dorsey as permanent CEO. Following his appointment, Dorsey announced that Twitter will cut its workforce by 8% or 336 jobs globally. Most of the jobs cuts will occur in the products and engineering departments of the company.
Dorsey explained that the management made “extremely difficult decision” to terminate employees. He emphasized that they are doing it with the” utmost respect” for person affected by the workforce reduction. Twitter is providing generous exit packages and helping them find new jobs.
Ballmer among the largest individual investors of Twitter
Bloomberg noted that Ballmer’s stake in Twitter is valued at approximately $800 million. He is one of the largest individual investors of the social media company. Ballmer’s net worth is $21.4 billion based on Bloomberg Billionaires Index.
Twitter co-founder Ev Williams own 6.8% stake while Dorsey owns 3% stake in Twitter. Last week, Saudi Prince Alwaleed Bin Talal disclosed that his stake in the social media company is more than 5%.
James Cakmak, an analyst at Monnes Crespi Hardt & Co. commented that there is a possibility for Ballmer to be interested to join the Board of Directors of Twitter. He suggested that Twitter will obtain connections and experience in professional sports with Ballmer on the Board. He explained that professional sports are important for Twitter to become a valuable source of information about major events.
On the other hand, Wedbush Securities analyst Michael Pachter said, “He’s a brilliant man, he’s clearly a very smart guy, but he is the guy who thought the iPhone was a joke. He is the guy who bought Nokia. It doesn’t make me like Twitter any more or less.” The analyst has Neutral rating on the stock and a price target of $30 per share.