With Twilio under activist pressure, Segment could be put up for sale But recovering the 2020 purchase price could be impossibleTwilio’s foray into the customer data (CDP) business could be heading for an early conclusion.
During the last quarters of Lawson’s tenure atop the company, Twilio came under pressure from activist investors Anson Funds and Legion Capital to divest assets to bolster shareholder value.
With all that value and an eye toward expanding its market, Twilio went out and spent $3.2 billion to acquire Segment.
What is Segment worth?
According to Twilio, its Segment unit generated $75 million worth of revenue in Q4 2023, up 4% from a $73 million result in the year-ago quarter.
Twilio’s CEO and co-founder, Jeff Lawson, is stepping down from his role and his seat on the company’s board, following months of pressure from activist investors and several quarters of slowing revenue growth.
Khozema Shipchandler, Twilio’s president and a former GE denizen, is taking over as CEO.
While the timing of the move was a surprise, it’s not a massive shock to see Lawson heading for the exits.
Investors have long made clear their discontent with Twilio’s recent performance, and at some point, either the results improve or something changes at the top.
First, activist pressure on companies is not something that can always be ameliorated by a board shakeup or smaller changes to operations.
After years of steady growth, Twilio is undergoing a round of layoffs that will impact around 17% of its global workforce. The company will also restructure its internal organization and…
