Is Twitter Inc (TWTR)’s Ploy of Going Private Going to Work?

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Should Twitter Inc (NYSE:TWTR) be going private and if yes, what is the logic underlying such a move? This was the big question on CNBC and when it was put to Herb Greenberg, a regular contributor on the channel, he opined that the micro-blogging site was much better off if it went private rather than being merged into a larger player like Google, Apple and so on.

Further justifying his opinion, he went on to point out that a worthy precedent in this regard was Dell and Twitter Inc (NYSE:TWTR) would do well by going private since it was a great way to raise cash. The expert also pointed out that survival for this concept would mean a complete overhaul wherein the company will be forced to squeeze out of its comfort zone, namely micro blogging, and undergo a complete makeover. Finally, it will evolve as something totally unique than what it is now.

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On being confronted with the current trend of protecting investors from the risks involved, Herb Greenberg pointed out that the intention underlying such practices was to warn and prevent investors from making mistakes. Basically, investors in the past did suffer from lack of insight and providing guidance to the current crop was a way of ensuring that lessons had been learned from other’s mistakes.

Amidst all the speculation, there is yet another reason as to why Twitter Inc (NYSE:TWTR) shot into news and it was due to none other than its CFO Anthony Noto. Having posted a private message on his public account, the top ranking executive inadvertently leaked plans to get Justin Bieber on board in relation to promoting a particular app. Meant as a ploy to retain and draw young users, it remains to be seen whether this so-called chic app actually marks a turnaround which Twitter Inc (NYSE:TWTR) truly needs.

This article has been written Vinita Basu.

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