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Twilio may actually be worth the attention of activist investors | TechCrunch


Most Twilio The account will be considered a startup success story. But after peaking at $400 a share in September 2021, when everyone was dreaming about a valuation, the company suffered a long slump, falling to around $66 a share. This kind of performance often attracts the attention of investors.Activist investors, so it’s probably no surprise that Anson Funds and Legion Partners reportedly Turn the screw About the company.

The communications API company appears to be responding to the pressure by cutting costs, in corporate terms: Cut another 5% of staff As the stock price fell on Monday morning, so did the number of employees; the news comes more than a year after the company laid off employees. 11% of the workforce September 2022 and 17% in February 2023.

But this round seems more like Twilio throwing a bone in the activist crowd, showing it could be streamlined even further. Laying off employees during the holidays is not a good idea, but with investors paying attention, perhaps the executive team feels it has no choice.

At the height of its valuation, Twilio made some big moves. In 2018, it acquired SendGrid $2 billion, and acquired customer data platform Segment in 2021 US$3.2 billionBoth measures aim to combine customer data with communications data the company collects through its core communications API.

Whether this is effective is debatable, but with stock prices in the 1960s, it feels like a bit of a luxury. There was so much value at the time that it was worth trying to expand the company’s capabilities. Today, it’s not so worth it.

Shares plummet as two activists pressure, company weak, fight feels more like Zendesk, ultimately sold off to private equityinstead of Salesforce, ultimately beat back its activists.

The big question here is whether the sharply lower stock price, questionable acquisitions and other poor financial data points mean the activists’ view has merit. If so, what does this mean for Twilio?

Activists conflate it

No matter how you look at it, the company has faced tremendous instability of late.CEO Jeff Lawson announced in February that he would Split the company into two units. He appointed Elena Donio to manage data and applications, including Segment.On Monday, she announced she would serve as Step down later this month.



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