'Twilio Hired Qatalyst To Advise On Defense Against Activist Investor Group' - CNBC
Portfolio Pulse from Benzinga Newsdesk
Twilio Inc. has engaged Qatalyst Partners to advise on defense strategies against activist investors Legion Partners and Anson Funds, who are pushing for the sale of the company or its data and applications business unit, which includes Segment. Despite a 45% gain this year, Twilio's stock is still 84% below its peak from early 2021, and revenue growth has slowed significantly. The company recently announced layoffs, including a 5% reduction in its data and applications unit. Qatalyst, known for M&A advisory, is not indicating a sale of Twilio at this time.
December 13, 2023 | 3:19 pm
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NEUTRAL IMPACT
Twilio is working with Qatalyst to defend against activist investors. Despite recent stock gains, long-term value is down and growth is slowing. Layoffs and restructuring indicate potential operational challenges.
The engagement of Qatalyst by Twilio suggests a proactive approach to activist investor threats, which could reassure investors and stabilize the stock price in the short term. However, the underlying issues of slowed growth and recent layoffs may continue to concern investors, potentially offsetting any positive impact from the defense strategy.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 100