Twitter Proposal Seeks to Turn Company Into a Co-Op -- Tech Roundup

Twitter (TWTR) has had a tough go lately and it's been well-documented across every platform, TheStreet included. Whether it's the lack of NFL streaming this year or co-founder Ev Williams selling stock, Twitter is constantly in the headlines.

Admittedly, Williams is selling for personal reasons, not Twitter-business reasons. But investors would feel a lot more comfortable with the move if everything were going better and user growth was moving in the right direction.

Surely, many topics will be at hand when the company holds its annual shareholder meeting in May. One of the more interesting topics though, includes forming a co-op. According to ReCode

"Last Fall... a group of Twitter diehards started a petition encouraging the company to sell itself to its users, which would essentially turn Twitter into a co-op... The movement garnered enough attention that a proposal to explore the co-op idea has made it onto the official agenda for the company's annual shareholder meeting."

Just because the topic ends up on the agenda though, doesn't mean it will happen. In fact, it will almost certainly not happen. But it just goes to show the kind of sideshow that's occurring with Twitter.

Without user growth or sales growth, the company is sort of floundering. Bringing back co-founder Jack Dorsey has instilled some confidence, but investors are waiting for Twitter's incremental changes to show positive traction.

So far though, there hasn't been much to get excited for and it's likely that patience is wearing thin. The fact that the company failed to sell itself last fall didn't sit well with too many investors either.

Shares of Twitter closed at $14.36 Monday, up 0.5%. 


Rumors have begun to surface that TaskRabbit, one of the leading technology platforms behind the gig economy, could be for sale. CEO Stacy Brown-Philpot confirmed these rumors, according to ReCode.

Brown-Philpot reportedly called it "opportunistic."

While TaskRabbit has raised some $38 million from investors, it had to lower its valuation last year in order to become more appealing to investors. Brown-Philpot had initially promised to make the company profitable by the end of 2016, when she took over for founder and CEO Leah Busque. However, Brown-Philpot later backed away from that statement.

Some of TaskRabbit's competitors were shut down or "bought for pennies on the dollar," according to TechCrunch. Could TaskRabbit be the same way? There seems to be some speculation that a company, or multiple companies, would want to acquire this property.

Call it a hunch, but I have my doubts that suitors are lining up to buy TaskRabbit at a big premium. Lowering its valuation doesn't look good, and this has been a tough space for many companies to get traction in, so I'm not sure TaskRabbit's business demands a massive premium.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.

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