Twitter Inc (TWTR) announced on Tuesday the acquisition of Revue, an email newsletter startup.
However, the financial terms of the agreement remained undisclosed.
Following the acquisition, Revue is to operate as a standalone service, while it plans to hire for essential roles in areas such as engineering, design, data science and research.
Twitter shares closed higher for the fifth time in the past ten trading sessions in New York on Tuesday. It has also been the sharpest single-session gain since December 10th. The stock went up 3.83% ($1.83) to $49.67, after touching an intraday high at $51.71, or a price level not seen since January 8th ($52.66).
Shares of Twitter Inc have retreated 8.27% so far this year, following a 68.95% surge in 2020.
According to Twitter, Revue’s premium features will be made free-of-charge for all users starting January 26th, while the paid newsletter fee will be reduced so that writers are able to retain more of the revenue generated from subscriptions.
Revue was established nearly six years ago in Utrecht, Netherlands, while among its clients are Vox Media, Chicago Sun-Times and the Markup.
Analyst stock price forecast and recommendation
According to CNN Money, the 33 analysts, offering 12-month forecasts regarding Twitter Inc’s stock price, have a median target of $50.00, with a high estimate of $67.00 and a low estimate of $19.00. The median estimate represents a 0.66% upside compared to the closing price of $49.67 on January 26th.
The same media also reported that at least 22 out of 38 surveyed investment analysts had rated Twitter Inc’s stock as “Hold”, while 11 – as “Buy”. On the other hand, 4 analysts had recommended selling the stock.